TNAG-1631-FCO40-2247-Visits-by-members-of-the-Executive-Council-and-Legislative-C-1987 — Page 9

CONFIDENTIAL

(d)

caution - at considerable political cost to himself - HMG and the Hong Kong Government had publicly disowned him. It was misleading to say that all options were open: HMG should have done more to dampen expectations; and should not make the situation more difficult now. People had to understand that Hong Kong's new "majoirty shareholder" would want to make up its own mind.

As he was leaving, Sir S Y Chung said that he would have raised the handling of the Vietnamese refugees issue had there been more time. He did not think the problem was being handled well. This was doing no good to HMG's standing in Hong Kong.

30 July 1987

CONFIDENTIAL

David Momoss

David Reddaway

PS/Lord Glenarthur