TNAG-1354-FCO40-1795-Constitutional-development-in-Hong-Kong-1985 — Page 67

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Mr Galsworth

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PS/Lady Young

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Date:

4 April 1985

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PS/Mr Luce

9/4 Dr Wilson

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When Lord Rhodes called on Lady Young on another matter yesterday (3 April) he said that he hoped that we would

'make haste slowly' with the introduction of direct elections in Hong Kong. It seemed to him unlikely that the Chinese would turn their attention to the drafting of the Basic Law until they were sure that they had got their own internal commercial legislation right; and it made no sense to start the development of representative institutions in Hong Kong before the Basic Law had been settled. He suggested that we might get alongside the Harvard professor (whose name he said was Dr Cohen) who had been advising the Chinese on company law to see how their thinking was evolving.

2. Lord Rhodes also made it clear that he was irritated with Lord Kadoorie, who he thought had misled him over a nuclear power contract with the Chinese involving GEC. Lord Kadoorie had given him to understand that the contract was in the bag, but had recently written indicating that the Chinese had asked for tenders from a West German company. He would be seeing a representative of GEC that afternoon to try to get to the bottom of the matter.

3. I record all this for what it is worth. You will be better placed than I to judge what weight to put on Lord Rhodes' remarks.

4 April 1985

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SG Eldon

PS/Lady Young