CONFIDENTIAL COVERING SECRET
It is suggested that Ministers and senior officials might make the following points on the Planning Paper, as appropriate.
GENERAL
1.
The Governor will be aware that, in our judgement, the plan of
action set out in the Planning Paper is the minimum which would be acceptable here.
2. Experience over many years indicates that the risk of local resistance from the Hong Kong establishment is not negligible. (The Governor is inclined to discount this.) We agree that the plan of
action is more likely to be acceptable in Hong Kong if it can be presented as the policies and programmes of the Hong Kong Government solely with local needs in mind: but we, for our part, would have
great difficulties if, as a result, attempts were made subsequently to delay the programmes beyond the target dates set by the 5-year
time limit.
3. It would be very helpful here to have an early announcement of what the agreed package of reforms is to be.. A suitable opportunity might be the Governor's annual speech at the opening session of the Legislative Council in October.
4. An announcement could be represented as a further look at the needs of Hong Kong now that the recent difficulties caused by the recession there have been overcome. We would judge it to be advantageous for the Governor himself to announce the proposals than to have them revealed here, e.g. in reply to Parliamentary Questions.
We entirely accept that an announcement could not include any detailed formulation of taxation proposals which would involve anticipating future budget statements. But (see Speaking Note No. ? under FISCAL below) Hong Kong opinion will, we judge, need to be prepared for changes in general budget strategy.
5.
LABOUR LEGISLATION (Para 21, Annex C paras 4-6 and Annex D para 1)
We are glad that agreement has now been reached on the legislative programme in Annex D which recognises the importance of progress in
this field.
1.
}
2
CONFIDENTIAL COVERING SECRET
#
No comments yet.
Private notes are available after approval.