TNAG-1838-FCO40-2613-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 46

CONFIDENTIAL

From: R J T McLaren

Date:

Cc:

13 February 1989

PS

Mr Gillmore

Mr Holt, PRU Mr Paul, HKD

(Section

12

FAC ENQUIRY INTO HONG KONG : OUTLINE OF MEMORANDUM

1.

The outline submitted under cover of Mr Paul's minute of 10 February seems to me to be on the right lines. In general, we should aim to present a positive picture: of clear policies consistently pursued; of a prosperous Hong Kong vigorously investing for the future; of painstaking negotiations with the Chinese, skilfully conducted; and of close Ministerial involvement throughout.

2.

The problems cannot be ignored, but should be seen against that background. To set them in context, I suggest that the proposed passage about the Hong Kong economy should be expanded and brought forward, eg, between Sections 5 and 6.

3.

I think the Committee have accepted that they should take the Joint Declaration as the starting point for their enquiry. It will probably be necessary to include passages on the lines of Sections 1-4, but these could perhaps be shortened. Care will be needed to ensure that whatever we say here is fully consistent with the introductory section of the White Paper (Miscellaneous No 20 of 1984) giving the text of the Draft Agreement. The same will apply to the analysis of the Agreement (Section 5 of Mr Paul's draft). Here, and in Section 6, we will need to ensure that we do not interpret the Joint Declaration itself, or the agreements which have been reached in the Joint Liaison Group, in a manner to which the Chinese would be likely to object.

4. Particular care will be needed over the drafting of the section on representative government, which the Committee are likely to regard as the central issue. Here again, we shall need to ensure consistency with the relevant White Papers.

вит

RJT McLaren

CONFIDENTIAL