TNAG-1356-FCO40-1797-Constitutional-development-in-Hong-Kong-1985 — Page 165

BE USED TO GET THE CHINESE INTO A MORE INFORMAL EXCHANGE ON THEIR

ANXIETIES WITHOUT GETTING THEM FORMALLY COMMITTED IN PUBLIC TO A

DEMAND THAT THE SUBJECT BE DEALT WITH IN THE JLG. I THINK EXCO

WOULD PROBABLY BE READY TO TELL THE CHINESE NOW THAT WE WOULD BE

WILLING TO HAVE A DIALOGUE ON THEIR ANXIETIES BUT THAT IT WOULD

BE EASIER TO TAKE ACCOUNT OF THE SENSITIVITIES OF BOTH SIDES IF

THIS WERE CONDUCTED OUTSIDE THE JLG.

5. THERE ARE ALSO ISSUES OF PUBLIC PRESENTATION NOT DEALT WITH IN

YOUR TELEGRAM. IT IS TRUE THAT THE JOINT DELCARATION PROVIDES FOR

CONSULTATION ON A SMOOTH TRANSITION BUT IT SPECIFICALLY (AS A

RESULT OF OUR INSISTENCE IN THE NEGOTIATIONS) TIMES THIS CONSULTA-

TION FOR A SECOND STAGE. NOR DOES YOUR TELEGRAM PRODUCE THE ANSWER

TO THE INEVITABLE CLAIM THAT THE CHINESE ARE ASSERTING AND THE UK

ARE ALLOWING THE JLG A SUPERVISORY ROLE OVER THE PRE-1997

ADMINISTRATION. SUSPICIONS ABOUT THE JLG WERE REMOVED BECAUSE IT

WAS MADE CLEAR IN THE JOINT DECLARATION THAT ITS FIRST TASK WAS

A PRACTICAL ONE CONFINED TO INTERNATIONAL ISSUES. IF IT NOW

BECOMES KNOWN THAT HMG ARE TALKING IN SECRET TO THE CHINESE ON

CONSTITUTIONAL MATTERS IT WILL AROUSE ALL THE OLD SUSPICIONS THAT

ANOTHER DEAL IS BEING DONE BY HMG AND THE CHINESE GOVERNMENT OVER

THE HEADS OF THE PEOPLE OF HONG KONG.

6. FOR THE REASONS IN MY TEL UNDER REFERENCE AND THOSE GIVEN ABOVE,

I THINK THAT EXCO WILL STILL CONSIDER THE COURSE PROPOSED IN MY TEL

UNDER REFERENCE THE MORE PRUDENT ONE. WHETHER THEY WILL ACCEPT THE

COURSE YOU HAVE PROPOSED WILL DEPEND IN PART ON THE ANSWERS TO THE

ABOVE POINTS. I THINK HOWEVER THAT THEY WOULD ACCEPT THAT, IF THE

CHINESE INSISTED ON MAKING A STATEMENT UNDER, FOR EXAMPLE ''ANY

OTHER BUSINESS'', OUR DELEGATION SHOULD NOT SEEK TO STOP THEM

AND WOULD HAVE TO AGREE TO STUDY IT.

}

7. I SHOULD BE GRATEFUL FOR YOUR FURTHER COMMENTS ON THE POINTS

RAISED ABOVE DESKBY 15010OZ SO THAT THEY CAN BE TAKEN INTO ACCOUNT

DURING THE EXCO DISCUSSION.

YOUDE

'HONG KONG AGREEMENT

LIMITED

HD/HKD

HD/FED

HD/PLANNING STAFF HD/PUSD

DEP HD/PUSD

RES D (MR WALKER)

PS

PS/MR RENTON

COPIES TO: (VIA ADR)

MR ROBERTS NEWS DEPT MR FIFOOT LEGAL ADVS MR MARTIN ASST STAFF

CABINET OFFICE

MR MALLABY CABINET OFFICE MR DR C CHRISTOPHER

CABINET OFFICE SIR P CRADDOCK NO 10 DOWNING ST. MR WOOD LEGAL ADVISERS

PS/PUS

SIR W HARDING

MR WILSON

SIR J FREELAND

MR J CROWLEY PUSD

-2-

SECRET

Page 165Page 166