TNAG-0010-FCO40-46-Kowloon-disturbances-1986 — Page 107

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Cater and Ho Yin, with R.C. Lee and another Chinese friendly to us, will take place at 4.30 this afternoon at the Hang Seng Bank building. (Ho Yin's brother is connected with this bank.)

41. Probably nothing but courtesies will emerge from thi meeting today. But it could be that Ho Yin may be probing (either for his own reasons or on instructions) for some face saving gesture to enable the Communists to disengage. The Governor has instructed Cater to go to the meeting primarily to listen. But if this or subsequent meetings go well, Cater has been authorised to make certain points:-

(1)

(2)

(3)

(4)

that the Governor, knowing a need to save face would arise, had already deliberately permitted demonstrations outside the main gate of Government House which were allowed to reach a degree of unruliness before being stopped that would not otherwise have been allowed (this was in fact one of the Governor's reasons for tolerance):

that a positive indication of good faith will be required of them, such as the physical removal of the loudspeakers from the Bank of China building:

that he felt it probable the Governor would not wish to take retrospective legal action for offences committed in the last few days provided all Communist action now ceased, although he could not of course intervene where charges had already been laid:

The

that, before going on leave, the Governor might in a television or radio interview make a generally conciliatory (though not of course apologetic) reference to recent events, including the theme of no victimisation. major part of the subject matter in any such interview would be references to general progress in Hong Kong, including mention of steps to be taken to improve labour relations.

The Governor has some other ideas which could be held in reserve: the above seems enough for a start.

5.

Governor, however, has also asked me to emphasise that too much should not be made of these developments and that, although all is quiet today, Hong Kong is by no means out of the wood.

6. All this provides a further strong reason for not taking action against N.C.N.A. in London.

7. During this lull, though Governor has been preparing for tougher measures he has not had to use any. Since publication yesterday of regulations dealing with inflammatory loudspeakers, there have been virtually no such broadcasts. Governor had not therefore yet had to declare any buildings closed areas. It is good that he has these measures still up his sleeve. It is important to recognise that, if the Communists decide after this lull to have another go, Governor may have to hit them with all he has got.

8. Bolland would be grateful if copy could be passed at once to Private Office, Foreign Office.

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