CONFIDENTIAL

3. As is now customary, the visit will have distinct public and private aspects:

(a) Privately the main objective is to agree on the tactics for handling current issues: (i) the fifth round of talks with China (we shall not know the outcome of the fourth round

28/29 May until the Minister arrives in Hong Kong). The Governor envisages a substantial ExCo session which he sees as an opportunity to begin to discuss the sensitive question of what changes we would be willing to contemplate during the negotiation with the Chinese, although we would not be able to be entirely frank with ExCo about our bottom line

(speaking notes attached: Brief No 6); (ii) HMOCS and other Civil Service issues; (iii) the Garrison; (iv) the Airport. The Minister will wish to discuss the key points which emerge from round four with Mr Patten: their substance, the prospects (and likely conditions) for agreement with the Chinese, and how we continue to present the talks at Westminster and in Hong Kong.

(b) The latter consideration leads directly into public impact. The first objective will be to underline the close working relationship between the Minister of State and the Governor and to demonstrate HMG's commitment to Hong Kong and unity of policy with the Hong Kong Government. To this end, the Minister will wish to convey the sense that the current talks represent the successful working out of the Governor's policy, as announced on 7 October (ie that we had always anticipated negotiating the detail with China, so the talks are in no sense a climb-down, and anyway, any agreement with China will need LegCo approval). The Minister agreed that the visit should be seen to focus on community issues and environmental matters, each of which will provide an opportunity to show that HMG cares about Hong Kong.

CONFIDENTIAL

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