TNAG-1396-FCO40-1868-Future-of-Hong-Kong-Basic-Law-1985 — Page 73

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pia (Basic Law file),

CALL BY PUS ON HUAN XIANG: 1400, THURSDAY 13 JUNE 1985

HK matters.

Lam

2716

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1. You took the PUS to call this afternoon on Huan Xiang, Adviser to the Chinese Academy of Social Sciences.

Huan Xiang made a number of points of interest.

Basic Law Drafting Committee

2. Huan said that the Standing Committee of the NPC had just approved the list of names for the Basic Law Drafting Committee. 40% of the 59 participants would be from Hong Kong. The aim was to include as representative a group of people as possible, and thus to establish a "medium" through which to

fathom" the thinking of the Hong Kong people. Many Chinese

The lawyers did not understand how Hong Kong operated. Chinese Government thought that the Law would take about two or three years to draft.

Economic Co-operation

༢.

Huan said he hoped there would be more co-operation between medium and small enterprises in the United Kingdom and China. In continuing the re-organisation of the Chinese economy, the focus would now be on medium and small enterprises. China also hoped to co-operate with the United Kingdom in high technology, although they were aware of the restraints imposed by COCOM. Computer technology was one area of interest. The re-organisation of Chinese Armed Forces also offered scope for co-operation, although the accent there was not on high technology (the PUS stressed that Britain had been in the forefront of moves to Liberalise COCOM restrictions on trade with China).

As for the mechanism of economic co-operation, Huan said that he favoured a system for regular review. It would be useful to have a meeting in, say, 1987 to take stock: "to discuss was better than not to discuss". Although China had decided that Western Europe would be one of the main focuses of her foreign trade, the problems of coordinating that trade was much greater than with the unified markets of the United States and Japan.

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