TNAG-1504-FCO40-2062-Guangdong-nuclear-power-station-project-at-Daya-Bay-safety-c-1986 — Page 52

1.

'esoned) 2 Femin

2. 47/9

Jeth Jan ipio

2 Smith or

Cu

From the Private Secretary

CONFIDENTIAL

DIEU

ET MON

OROIT

#ki

нас HCC 166/

22SE!

10 DOWNING STREET

दि

RPI PA MHK 166\1AB

門

18ix

573

fr wiban

News A

ob

10 September 1986

IX

ཀཱཐཱས ་ ཟ་

PRIME MINISTER'S MEETING WITH THE GOVERNOR AND MEMBERS OF

THE EXECUTIVE COUNCIL OF HONG KONG ON 10 SEPTEMBER

The Prime Minister met the Governor of Hong Kong and members of the Executive Council this afternoon for a general discussion. A list of those who attended is attached.

The Prime Minister said that she continued to follow developments in Hong Kong closely. The United Kingdom of course retained responsibility for Hong Kong up until 1997 and would exercise that responsibility fully. She was anxious to hear the views of members of the Executive Council on conditions in Hong Kong. She was aware that there were a number of issues which were giving concern. She was sorry that illness prevented Sir S Y Chung from being present.

In response to the Governor's invitation, Sir Michael Sandberg gave an account of the Hong Kong economy. Exports were strong, inflation low and the stock market at an all time high. There was plenty of investment from Japan and North America, though not as much as Hong Kong would like from the United Kingdom. Indigenous investment by Hong Kong

The basic Chinese, on the other hand, was disappointing. constraint was confidence and the drain of wealth overseas, which was actively encouraged by Canada, Australia and Singapore. But apart from the weakness of investment from

Sir local sources, the Hong Kong economy was in good shape. Michael mentioned the low quality of NCNA staff, as representatives of China, as a factor affecting confidence.

It had been Business had

Miss Dunn gave reported on the functioning of the Legislative Council. In general experience with the indirectly elected members had been positive. possible to achive consensus on most issues. been conducted responsibly and the credibility of the Legislative Council in Hong Kong enhanced. Recently a more political approach had emerged over the Daya Bay nuclear power station. Debate on this had been confrontational. seemed likely, therefore, that the next session of the Legislative Council would be less peaceable. Because Hong Kong had been devoid of politics for so long, the change was felt more strongly.

It

CONFIDENTIAL