ec.dbj

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position will be).

Sticking points would presumably be

establishing the legal personality of the EC on the Territory of Hong Kong (the two sides won't agree)

5.

inviolability of staff residences (and that of HOM). some aspects of "protection and personal inviolability" exemption from duty to give evidence

So there are grounds for optimism. But alarm bells ring when Mr Delors' letter speaks in terms of amending Hong Kong legislation further down the road - he refers to this as the "long term solution" and to the list of privileges now to be negotiated as "a transitional solution". I think that Hong Kong will want to make it quite clear that they do not intend to legislate. If the Commission dig in over this, negotiations could founder.

Mirones.

Deborah Barnes Jones

Hong Kong Department

WH 312

270 2068

15 July, 1993

cc Mr Woodrow

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