CONFIDENTIAL
010343
MDHIAN 2132
IN THE ESPECIALLY COMPETITIVE ASIA/PACIFIC REGION. NOWHERE ELSE COULD PLAY THIS ROLE. SUCCESS IN IT WOULD BENEFIT EVERYONE, INCLUDING BRITAIN.
THIS SHOULD BE EXPLAINED TO THOSE WHO WISHED TO LEAVE. IF SOME STILL LEFT, NO PANIC: THEY MIGHT RETURN. BUT TO MINIMISE EMIGRATION, ACTIONS DAMAGING CONFIDENCE SHOULD BE AVOIDED. JARDINE'S MOVE OF ITS REGISTERED HQ TO BERMUDA HAD NOT HELPED.
5. AS TO FEAR OF CHANGE, THE AIM OF THE JD NEGOTIATIONS HAD BEEN TO KEEP CHANGE TO A MINIMUM. THE BL ALSO REFLECTED THIS. IMPROVEMENTS HAD BEEN MADE IN DRAFTING WHICH INVOLVED CHINESE CONCESSIONS AS EVEN MARTIN LEE RECOGNISED. ONLY DISPUTE NOW WAS OVER METHODS OF ELECTION. H K HAD HAD NO DEMOCRACY FOR 100 YEARS SO WHY INTRODUCE IT NOW ? CHANGE MUST BE GRADUAL. 100 PER CENT ELECTIONS NOW WOULD DAMAGE STABILITY AND HENCE PROSPERITY. 3 POINTS WERE COMMON GROUND WITH ''H K FRIENDS'': THE AIM IN PRINCIPLE WAS DEMOCRACY, IT SHOULD COME STEP BY STEP, AND IT SHOULD LEAD TO DIRECT ELECTIONS. ON DETAILS OPINION WAS DIVIDED (JOKING REFERENCE TO MARTIN LEE'S BURNING THE BL). A SENSE OF BALANCE WAS CALLED FOR. AS TIME MOVED ON, A NEW BALANCE MIGHT BE NEEDED. FINAL DRAFT OF BL WOULD BE PREPARED AFTER FURTHER CONSULTATION. NPC WOULD AIM FOR A TEXT ACCEPTABLE TO THE OVERWHELMING MAJORITY IN H K.
6.
ZHOU KNEW OF THE STRONG FEELINGS ON VBPS. CHINA WAS ALSO CONCERNED ABOUT IMPLICATIONS FOR THE SA R. IT WAS COOPERATING BY TAKING BACK ECVIIS AND TAKING ACTION IN COASTAL PROVINCES TO DISCOURAGE VBPS. BUT HK'S OPEN-CAMP POLICY WAS AN INDUCEMENT. A SOLUTION DEPENDED ON VIETNAM'S TACKLING THE CAUSES OF EMIGRATION AND BRITAIN'S TAKING FORCEFUL MEASURES. LORD GLENARTHUR HAD BEEN PLANNING TO DISCUSS THIS IN HANOI: ZHOU WAS CURIOUS TO KNOW HOW HE GOT ON. CHINA APPRECIATED BRITISH MINISTERS' ASSURANCE OF INTENT TO SOLVE THE PROBLEM QUICKLY. THEY SHOULD SETTLE IT WELL BEFORE 1997. HOWELL COMMENTED THAT THIS WOULD NEED CHINA'S HELP. ZHOU SAID HELP HAD BEEN GIVEN BUT CHINA COULD NOT SOLVE THE ROOT CAUSE. TAYLOR SAID IF VBPS WERE REFUSED ENTRY TO H K THEY WOULD LAND ON CHINA'S COAST. ZHOU SAID IF SO, THE LOCAL AUTHORITIES WOULD 'ADOPT CORRECT MEASURES'
7.
P
HOWELL SAID HE FOUND ZHOU'S GENERAL LINE ENCOURAGING. HK HAD GREAT FUTURE POTENTIAL AND COULD ''BUCKLE'' CHINA AND BRITAIN TOGETHER.
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