CONFIDENTIAL
THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED FOR
40 YEARS UNDER FOI EXEMPTION No... 27(1)
5. The PRC and Portugal announced in late May that they will enter diplomatic talks "in the near future to resolve the question of Macau". The Hong Kong agreement will no doubt be the blueprint for a Macau agreement. We shall need to keep an eye on the negotiations. If the Portuguese agree matters not covered
in the Hong Kong agreement (eg shape of future executive, interpretation of Basic Law) this will inevitably affect
Hong Kong.
6.
Partial elections to Hong Kong Legislative Council for the first time in September this year. Just short of half members will be elected by college consisting of directly elected representatives at District Board (lower tier administration) level, and by functional constituencies eg lawyers, trades union, doctors etc. Some signs of Chinese anxiety about pace of reform. Further review of system in
1987 before 1988 elections.
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7.
Decisions on reducing garrison from five to four battalions known to be under consideration by us. Represents return to 1980 levels, which Commander British Forces (CBF) considers justified following agreement, and is result of cancellation of expensive. barracks project not now considered justified. Decision not yet taken in London, but case looks strong.
8. CBF Hong Kong gave interview to Hong Kong television on 9 May in which he mentioned possibility of establishing internal security force to assist police, and also referred to possible PLA presence in Hong Kong after 1997. Communist press in Hong Kong has attacked CBF on ground that PLA role in Hong Kong after 1997 not business of British Government. No official comment from Chinese side.
CONFIDENTIAL
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