TNAG-1443-FCO40-1927-Constitutional-development-in-Hong-Kong-1986 — Page 238

CONFIDENTIAL

70447

1

AND HOW TO DEAL WITH THEM IN THE 1987 REVIEW, WILL BE AT THE SAME

TIME THE MOST DIFFICULT AND THE MOST IMPORTANT ISSUE IN

SINO-BRITISH RELATIONS OVER THE NEXT 12 MONTHS.

34.

WE MUST CONTINUE AND INTENSIFY OUR EXCHANGES WITH THE

CHINESE ON ALL THE ISSUES CONNECTED WITH QUOTE CONVERGENCE

UNQUOTE. WE MUST EMPHASISE WHY THE 1987 REVIEW MUST BE SEEN TO

BE GENUINE AND OPEN, WITH BOTH THE BRITISH AND CHINESE

GOVERNMENTS KEEPING AN OPEN MIND OVER THE OUTCOME. WE MUST SEEK

TO CREATE CONDITIONS OF TRUST WITHIN WHICH PROBLEMS CAN BE

DISCUSSED AND SOLVED.

35.

UNTIL THE STATE OF OPINION IN HONG KONG CRYSTALLISES, WE

CANNOT FORESEE PRECISELY HOW THESE PROBLEMS MIGHT BE TACKLED.

BUT THE CLOSER OUR INFORMAL DIALOGUE WITH THE CHINESE ON ALL THE

ISSUES CONNECTED WITH QUOTE CONVERGENCE UNQUOTE AND THE BASIC

LAW, THE BETTER WILL BE OUR CHANCES OF FINDING A WAY FORWARD

WHICH WILL AT LEAST REDUCE THE DIMENSIONS OF THE PROBLEMS

INVOLVED AND PRESENT AN OUTCOME WHICH WILL MAINTAIN CONFIDENCE

THAT THE TRANSITION TO 1997 CAN BE NEGOTIATED SUCCESSFULLY.

ENDS

HOWE

OCMIAN 0447

NNNN

YYYY

MAIN

LIMITED

HKD

MR GILLMORE

2

CONFIDENTIAL