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074007 MDHIAN 1408
Redacted under FOI exemption section 27 (1),
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11 JAN 1988
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FM HONG KONG
TELNO 4894
OF 22104OZ DECEMBER 87
INFO IMMEDIATE PEKING
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YOUR TELNO 3297: FORMATION FOR FIRST SAR GOVERNMENT
I HAVE GIVEN MORE THOUGHT TO THE PROBLEM
IT SEEMS CLEAR THAT THE CHINESE ARE, BENT ON INCLUDING, IN THE FIRST DRAFT OF THE BASIC LAW, SOME PROVISIONS RELATING TO THE ESTABLISH- MENT OF THE FIRST SARG. THEY ALSO SEEM TO HAVE SET THEIR MINDS ON HAVING A PREPARATORY COMMITTEE SOME TIME BEFORE 1997. BEYOND THAT AND THEIR DETERMINATION TO DEMONSTRATE THE CHANGE OF SOVEREIGNTY HOWEVER, THEIR THINKING REMAINS UNCLEAR.
2. THIS PUTS US IN A VERY DIFFICULT POSITION. GIVEN THE CRUCIAL IMPORTANCE OF THE ISSUES INVOLVED, WE NEED TO THINK THROUGH VERY CAREFULLY IDEEAS WHICH WOULD BE ATTRACTIVE TO THE CHINESE BUT WHICH WOULD NOT CAUSE SERIOUS PROBLEMS EITHER TO MINISTERS OR LOCALLY IN HONG KONG. I STILL THINK WE MUST NOT (NOT) ALLOW OURSELVES TO BE RUSHED BY THE CHINESE TIMETABLE INTO PUTTING FORWARD IDEAS WHICH MAY NOT TURN OUT TO BE PRACTICABLE FROM OUR POINT OF VIEW. IT WOULD IN ANY CASE BE VERY DIFFICULT TO WRITE A DETAILED PAPER WITHOUT KNOWING MORE CLEARLY WHAT ARE THE REAL CHINESE CONCERNS.
3.
TO TACKLE THE IMMEDIATE PROBLEM OF THE NEXT BLDC POLITICAL SYSTEM SUB-GROUP MEETING, I SUGGEST WE AIM AT PUTTING FORWARD A SHORT PAPER BY MID-JANUARY TO THE CHINESE, IN WHICH WE WOULD.
(A) EXPRESS HMG'S CONCERN OVER THE POTENTIALLY DAMAGING EFFECT, BOTH IN HONG KONG AND OVERSEAS, OF DETAILED PROVISIONS IN THE FIRST DRAFT OF THE BASIC LAW WHICH GIVE THE IMPRESSION OF ''ALL CHANGE ON 1 JULY 1997'':
(B)
REITERATE OUR ARGUMENT THAT THE FORMATION OF THE FIRST SARG IS A ONE-OFF PROBLEM WHICH COULD BE DEALT WITH AFTER THE PERMANENT STRUCTURE OF GOVERNMENT HAS BEEN DETERMINED AND SEPARATELY FROM THE BASIC LAW:
(C) SUGGEST THAT, IF THE CHINESE HAD TO PUT SOMETHING IN THE
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