TNAG-1602-FCO40-2198-Future-of-Hong-Kong-Basic-Law-1987 — Page 58

CONFIDENTIAL

ISSUE MIGHT BE USEFUL ALTHOUGH IT WILL CLEARLY NEED TO BE HANDLED WITH CARE. THIS COULD BE ON THE LINES THAT HMG APPRECIATES AND SUPPORTS THE NEED FOR LONG-TERM STABILITY IN CHINA AS A WHOLE. HONG KONG CAN BEST CONTRIBUTE TO THIS IF CHINA DEMONSTRATES ITS OWN CONFIDENCE IN THE MATURITY OF THE TERRITORY AND PLAYS DOWN REFERENCES TO THE HYPOTHETICAL NEED FOR INTERVENTION.

8. IF TIME ALLOWS A REFERENCE TO THE ''INTERVENTION

WILSON

YYYY

HMLNAN 1704

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D. (FE)

DEP.HD/PUSD

PS/MK RENTON

MR MCL RE

MR GILLMORE

COPIES TO:

MR FIFOOT, LEGAL ADVISERS

CONFIDENTIAL