SECRET AND PERSONAL
our policy towards Hong Kong are beginning to affect their
handling of the airport issue. We have two early
opportunities to correct Chinese misperceptions: the
Governor's farewell visit to Peking on 7-8 June, and the
Prime Minister's bilateral with Premier Li Peng in the
margins of the Rio summit on 11 or 12 June.
4. The Governor, in his telegram number 1459, proposes
that during his visit to Peking he should make a number of points with the authority of the Prime Minister and Secretary of State intended to reduce the level of Chinese
alarm. The Governor is also likely to have to take forward
the negotiations on airport financing: I am submitting separately to Mr Goodlad on the substance of that issue.
5.
I recommend that we seek the Prime Minister's agreement
to the Governor speaking along the lines he proposes in
Peking, and submit a draft letter to Number 10. The letter
undertakes that we will give the Prime Minister an updated
line to take, both on airport financing and on the
constitutional issues for his talk with Li Peng in the light
of the Governor's discussions in Peking. We shall need to
be careful at both sessions that we do not give the Chinese
the impression that all possibility of change in policy
towards Hong Kong is ruled out. But I believe that the
formula proposed here protects Mr Patten's freedom of
manoeuvre.
PF Ricketts
Hong Kong Department
BE1AAG/2
SECRET AND PERSONAL