TNAG-1416-FCO40-1897-The-financial-activities-of-Xu-Jiatun--Head-of-New-China-New-1985 — Page 7

•

CONFIDENTIAL

(F) IT WOULD BE IDEAL IF THERE WERE FULL COMPATIBILITY BETWEEN

REPRESENTATIVE GOVERNMENT AND THE BASIC LAW. PARTIAL COMPATIBILITY.

WOULD BE LESS THAN IDEAL. IF EACH SIDE SOUGHT TO INTRODUCE AN

ENTIRELY DIFFERENT SYSTEM THIS WOULD BE DAMAGING TO HONG KONG, BRITAIN, AND TO CHINA.

то

(G) THE PROCESS OF DRAFTING THE BASIC LAW SHOULD NOT BE RUSHED, IT

WAS BETTER FOR THE JOB TO BE DONE WELL THAN QUICKLY.

(H) IT WAS TOO EARLY TO SAY WHICH SYSTEM WOULD BE BEST SUITED TO HONG KONG, DIRECT ELECTIONS, INDIRECT ELECTIONS OR CONSULTATION.

4. FOR A SUMMARY ACCOUNT OF XU'S REMARKS ON THE KOWLLON WALLED CITY, THE BNO PASSPORT AND THE ROLE OF NCNA, SEE MY THREE IFTS.- 13

YOUDE

14

HONG KONG AGREEMENT

LIMITED

HD/HKD HD/FED

HD/PLANNING STAFF HD/PUSD

DEP HD/PUSD

RES D (MR WALKER)

PS

PS/MR RENTON

PS/PUS

SIR W HARDING

MR WILSON

SIR J FREELAND

MR J CROWLEY PUSD

COPIES TO: (VIA ADR)

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

CABINET OFFICE

MR MALLABY CABINET OFFICE MR DRC CHRISTOPHER

CABINET OFFICE

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

2. CONFIDENTIAL

!

1