TNAG-1356-FCO40-1797-Constitutional-development-in-Hong-Kong-1985 — Page 177

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OBJECTIVE AS SET OUT IN PARA 3 OF YOUR TELNO 2940.

7.

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SINCE WE WOULD NOT BE ACCEPTING THE CHINESE POSITION WE

SEE NO DIFFICULTY IN PLACING THE BRIEFING WHICH WE WOULD PROPOSE

TO GIVE IN THE CONTEXT OF 'EXCHANGING INFORMATION ON SUCH

SUBJECTS AS MAY BE AGREED BY THE TWO SIDES'. WE WOULD DO THIS

EXPLICITLY, AND IF NECESSARY MAKE IT PUBLIC. WE WOULD NOT SEE

THIS AS ACCEPTANCE ON OUR PART THAT THE CHINESE HAVE A FORMAL

STANDING IN ANY DECISIONS ON THIS MATTER. IT WOULD BE UP TO US

TO SEE THAT ANY DISCUSSIONS AT A LATER STAGE WERE NOT ONE-SIDED, AND WE WOULD SEE ANY CHINESE REFUSAL TO DISCUSS THEIR THINKING ON

THE BASIC LAW AS BEING VERY GOOD GROUNDS FOR DECLINING TO DISCUSS

WITH THEM OUR OWN IDEAS. THE STRENGTH OF OUR POSITION LIES IN THE FACT THAT IF THE CHINESE ARE CONCERNED, AS WE ARE SURE THEY ARE, TO BRING OUR IDEAS INTO LINE WITH THEIR OWN IDEAS ON THE

BASIC LAW, THEY WILL EVENTUALLY REALISE THAT THEY CANNOT EVEN APPROACH THIS WITHOUT EXPOUNDING WHAT THEIR IDEAS ON THE BASIC

LAW ARE.

8.

A FURTHER POINT IS THAT THERE ARE NO GOOD GROUNDS TO

ARGUE THAT WE ARE PREPARED TO LISTEN TO WHAT THE CHINESE HAVE TO

SAY OUTSIDE THE JLG BUT NOT IN THE JLG. TO DO THIS WE WOULD HAVE

TO BE PREPARED TO ARGUE THAT THE MATTER LAY FIRMLY OUTSIDE THE

TERMS OF REFERENCE OF THE JLG. WE THINK THAT SUCH AN ARGUMENT

WOULD BE HARD TO SUSTAIN SINCE THE JLG IS TASKED TO ENSURE A

SMOOTH TRANSFER OF GOVERNMENT IN 1997. IN ADDITION WE WOULD FACE THE PROBLEM OF HOW TO REACT IF, DESPITE WHAT WE SAID, THE CHINESE NEVERTHELESS CHOSE TO RAISE THE SUBJECT AT THE MEETING (AS WE HAD HALF EXPECTED THEM TO DO LAST TIME). UNLESS WE WERE TO WALK OUT,

WE COULD HARDLY DECLINE TO LISTEN TO WHAT THEY HAD TO SAY.

9.

MINISTERS HERE WILL NEED TO TAKE A DECISION ON THIS OVER

THE WEEKEND. WE WOULD BE GRATEFUL IF YOU WOULD ARRANGE TO PUT

MINISTERS' VIEWS TO EXCO URGENTLY AND TO LET US HAVE A REACTION

BY 151000Z.

HOWE

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

COPIES TO:

MR FIFOOT, LEGAL ADVISERS

MR WOOD LEGAL ADVISERS

RESEARCH D (FE)

D/HD PUSD

MR WILSON

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