TNAG-1744-FCO40-2463-Visits-by-FCO-officials-to-Hong-Kong--including-visit-by-Lor-1988 — Page 80

CONFIDENTIAL

Minister can assure Councillors that their complaints have been

taken up with the Home Office. On the Basic Law the Minister can

report on his exchanges in Peking and the debate in the House of

Lords.

10. In a broader context more generally, a report on the Minister's discussion with Zhou Nan is likely to be a major feature

of the meeting with ExCo, with particular reference to the first SAR

Government (Brief No 6) and progress over implementation of the

Joint Declaration (Brief No 8).

11.

Sensitive bilateral (London/Hong Kong) issues which could

feature during the visit are the defence cost negotiations

(Brief No 9) (if these are not effectively settled during the next

round on 14 to 16 June) and the current review of the civil aviation

relationship (Brief No 11). A further round of the review will

coincide in Hong Kong with the Minister's visit, and there is a risk

that unresolved issues could be brought by the Hong Kong

Government to the Minister's attention.

12.

Finally OMELCO or the press may well raise emigration (Brief

No 10) or the proposed Expo in Hong Kong (Brief No 15). The latter

topic needs to be handled with particular care: we are

unenthusiastic, but must not be seen as vetoing a Hong Kong

initiative.

Hong Kong Department

June 1988

CONFIDENTIAL