TNAG-1237-FCO40-1550-Future-of-Hong-Kong-1983 — Page 21

THE CHINESE INTENTION APPEARS TO BE TO CREATE THE IMPRESSION THAT THEIR PLANS ARE, OR COULD BE MADE, ACCEPTABLE BOTH IN HONG KONG AND INTERNATIONALLY. THEIR OBJECTIVE IS NO DOUBT ALSO TO UNDERMINE OUR CLAIM THAT OUR PSSITION IS REPRESENTATIVE OF THE TRUE STATE OF OPINION HERE. TO OFFSET THIS WE SHALL NEED TO SHOW THAT OUR POSITION EMERGES FROM, AND IS SUSTAINED BY, A CONTINUING PROCESS OF CONSULTATION: AND TO THIS END WE MUST PUT EXCO UNOFFICIALS IN A POSITION WHERE THEY CAN CONVINCINGLY ASSURE THEIR UMELCO COLLEAGUES, AND OTHERS AS NECESSARY, THAT THEY ARE BEING CONSULTED. CONSTITUTIONALLY THEIR STANDPOINT IS, IN ANY CASE, UNASSA ILABLE SINCE UNDER THE LETTERS PATENT AND ROYAL INSTRUCTIONS I AM REQUIRED TO CONSULT EXCO ON ALL IMPORTANT ISSUES OF POLICY.

4. THERE ARE TWO ASPECTS TO BE TAKEN INTO ACCOUNT. THE FIRST CONCERNS DEVELOPMENTS IN HONG KONG. THE APPOINTMENT OF THE SECRETARY (GENERAL DUTIES) HAS BEEN WARMLY WELCOMED AS A SIGN OF GOOD INTENTION. THE ARRANGEMENTS WE HAVE ESTABLISHED TO REVIEW PUBLIC AND BUSINESS CONFIDENCE IN HONG KONG AND TO TAKE WHAT ACTION IS OPEN TO US TO SUSTAIN THEM, ARE NOW IN OPERATION, AND I SHALL KEEP EXCO REGULARLY INFORMED ON THEM. I SHALL START THIS PROCESS AT EXCO ON 23 NOVEMBER.

5. ON THE TALKS, WHICH ARE THE IR MAIN CONCERN, THEY HAVE BEEN TEMPORARILY SATISFIED THAT NOTHING IS HAPPENING AT THE PRESENT TIKE. IF THIS CONTINUES THEY WILL WANT TO KNOW HMG'S STATEGY FOR DEALING WITH THE SITUATION. (SEE MIFT ABOUT LORD BELSTEAD'S VISIT). IF, AS WE HOPE, THE TALKS SOON RESUME, I HOPE I MAY HAVE DISCRETION TO KEEP EXCO INFORMED TO THE EXTENT NECESSARY TO MAINTAIN THEIR CONFIDENCE. I SHOULD OF COURSE REFER BEFORE DISCUSSING ANY POINTS OF PARTICULAR SENSITIVITY.

6. THERE IS NO CONFLICT BETWEEN WHAT I PROPOSE AND THE UNDERTAKING ON CONFIDENTIALITY. UNDER THE CONSITUTION THE GOVERNOR-IN-COUNCIL (IE EXCO) IS THE POLICY MAKING BODY OF THE GOVERNMENT. MOREOVER THE CHINESE ARE MAKING NO SECRET AT ALL ABOUT THEIR POSITION IN THE TALKS. POLITICALLY, WE CANNOT AFFORD TO ALLOW ANY SUBSTANCE TO BE GIVEN TO SUGGESTIONS THAT WE ARE CONDUCTING TALKS WITH THE CHINESE WITHOUT TAKING ADVICE DIRECTLY FROM THE PEOPLE WE HAVE APPOINTED TO REPRESENT THE HONG KONG CHINESE.

We want what...

MAD

YOUDE

FUTURE OF HONG KONG

LIMITED

HD EK & GD

HD/PLANNING STAFF

ED/FED

HD/PUSD

PS

PS/LORD BELSTEAD

PS/PUS

MR GIFFARD

MR DONALD

I

SECRET

COPIES TO

SIR I SINCLAIR

MR ROBERTS

MR COLES

MR MARTIN

LEGAL ADVISER

NEWS D

NO 10 DOWNING STREET

ASSESSMENTS STAFF

CABINET OFFICE