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discussed with them beyond the electoral issues, including the whole question of continuity in the Civil Service. It would therefore be worth thinking about the timing for any fresh approach to China (as soon as possible in the New Year, or after OPD (K)?) and the channel (Sir R McLaren on his return to Peking, or a more informal channel?).
4.
Meanwhile the Governor and his team have begun to think forward to the handling of the second-stage legislation. The brief includes a paper prepared for the group looking at pros and cons of putting forward the Governor's 1992 package unchanged, or alternatively the 1993 package. I understand that the Governor's instinct is to go for the 1992 package, mainly on the grounds that soundings of LegCo members indicates that there would be a majority for this at second reading (the UDHK and friends plus some independents), although a number of those who would vote in favour of a second reading would expect to amend the Bill at Committee stage. The soundings apparently indicated that the 1993 package would be lost on second reading, but this is a point which we might probe more fully.
5.
I propose that our objectives in the Ad Hoc Group Meeting should be a thorough discussion without reaching any firm conclusions, and a remit to the FCO to produce a draft OPD(K) paper for further consideration. This would enable the Minister to talk through the next stages with the Secretary of State and also with Sir Robin McLaren before we go firm on a course of action which is likely to define Sino-British relations for the remainder for the transition period.
6.
I
On the informal meeting with ExCo, I will discuss with Hong Kong after the Christmas break and before joining the Minister in Seoul how the Governor would like to handle this meeting. imagine that he will want a general stocktaking, avoiding specific conclusions. I will come armed with some notes for the Minister's use.
1.
At Mr Cornish's dinner for senior businessmen on the Friday evening, there is likely to be a good deal of anxiety about the Chinese threats to British economic and commercial interests. Brief No 2 includes our line to take, and Mr Cornish's recent reports which suggest that there is as yet no evidence that we have lost specific business, and that Gordon Wu at least is taking a pragmatic view. Mr Goodlad could reassure the businessmen that we are watching the situation closely, and of course doing all we can to return to dialogue with the Chinese side. But there is not much comfort we can give them in present circumstances.
8.
On Saturday morning, the Minister will be briefed on the Airport and visit Chep Lap Kok. Brief No 3 contains factual background. We have had no substantive discussion with the Chinese on outstanding airport issues since August and it is
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