TNAG-1468-FCO40-1997-Visits-by-members-of-the-Office-of-the-Unofficial-Members-of-1986 — Page 140

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CONFIDENTIAL

CALL ON MR RENTON BY SIR S Y CHUNG

11 A.M., 11 JUNE 1986

BACKGROUND

HONG KONG

B

I

General/Future:

1. The anxieties in Hong Kong of six months ago seem to

have subsided to some extent, although as the Governor has

often reminded us they remain

remain very much alive just below

the surface (see his telno 1767 attached). The Hong Kong

Stock Market remains buoyant: the recent Cathay Pacific

share flotation was 55 times oversubscribed. Land sales

have largely recovered from their 1982-4 slump: the last

remaining lot on the Victoria Barracks site was sold for a

record price.

2.

JLG III met in Hong Kong between 11 and 14 March and

made good progress on GATT and Hong Kong travel

documentation: the Chinese were on their best behaviour for

a Hong Kong audience. JLG IV meets in London between 22

and 25 July. An agenda has yet to be finalised.

II Structure of Government

3.

in

The Secretary of State met Foreign Minister Wu Xueqian

Brussels on 23 May and handed over three Hong

Hong Kong

papers covering the present system of Government

in Hong

Kong, the problem of convergence and the present state of

Hong Kong opinion on constitutional development in the

light of the 1987 review. Wu replied that the Chinese would examine these papers carefully.

CONFIDENTIAL