TNAG-1852-FCO40-2627-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 111

CONFIDENTIAL

465

100400 MDHOAN 6065

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 2153

OF 1918OOZ OCTOBER 89

HK B

011 13

TOP COPY Q DIST?

AND TO IMMEDIATE PEKING, BTC HONG KONG, UKREP JLG HONG KONG

FAC REPORT ON HONG KONG

1.

MINISTERS HAVE NOT YET DECIDED WHETHER TO SUBMIT AN INTERIM REPLY TO THE FAC OR A DEFINITIVE REPLY WHEN THE NATIONALITY PACKAGE HAS BEEN ANNOUNCED. IF MINISTERS DECIDE THAT AN INTERIM REPLY IS NECESSARY, IT WOULD PROBABLY NEED TO BE READY BY MID-NOVEMBER.

2.

ON THE ASSUMPTION THAT AN INTERIM REPLY MIGHT BE REQUIRED AT SHORT NOTICE, WE HAVE PREPARED THE OUTLINE OF A POSSIBLE REPLY, WHICH WILL NEED TO BE FAIRLY COMPREHENSIVE. WE ENVISAGE THAT IT

WOULD INCLUDE THE FOLLOWING ELEMENTS:

(A) A FIRM REAFFIRMATION OF HMG'S COMMITMENT TO THE JOINT DECLARATION. THE REPORT IS VERY USEFUL IN THIS RESPECT, CONFIRMING THAT THE JOINT DECLARATION REMAINS QUOTE THE ONLY FIRM TREATY BASE UNQUOTE FOR THE FUTURE.

(B) ENDORSEMENT OF THE COMMENT IN THE REPORT THAT RESPONSIBILITY FOR THE RESTORATION OF CONFIDENCE RESTS PRIMARILY WITH CHINA. THE REPLY WILL MAKE CLEAR THAT THIS IS PRECISELY THE MESSAGE WE

HAVE BEEN CONVEYING TO THE CHINESE IN OUR MEETINGS BOTH IN THE

JLG AND THE SECRETARY OF STATE'S MEETING WITH THE CHINESE FOREIGN

MINISTER AT UNGA.

(C) A FAIRLY DETAILED COMMENTARY ON THE POINTS IN THE REPORT ON

THE BASIC LAW. WE HAVE NO DIFFICULTY WITH THE IDEA THAT THE BASIC LAW SHOULD BE THE QUOTE SON UNQUOTE OF THE JOINT DECLARATION IN THE SENSE THAT THE BASIC LAW IS DESIGNED TO GIVE

PRACTICAL EFFECT TO THE JOINT DECLARATION. BUT WE HAVE TO MAKE CLEAR THAT IT REMAINS A (NEXT WORD UNDERLINED) CHINESE LAW, WHICH MUST BE ENACTED IN ACCORDANCE WITH THE CHINESE CONSTITUTION. (D) ON THE STATIONING OF THE PLA, THE REPLY WILL MAKE CLEAR WHAT WE HAVE ALREADY DONE TO IMPRESS UPON THE CHINESE THE NEED TO TAKE

ACCOUNT OF THE ENORMOUS SENSITIVITY OF THE ISSUE IN HONG KONG.

BUT WE WILL ALSO SIGNAL THE FACT THAT IN THE FINAL ANALYSIS THIS

IS A MATTER FOR THE CHINESE.

(E) ON DEMOCRACY, THE REPLY WILL HAVE TO EXPLAIN THAT WHAT THE COMMITTEE HAVE PROPOSED IS UNREALISTIC AND GOES BEYOND ANY SORT

OF CONSENSUS IN HONG KONG. IT IS NOT YET CLEAR AT THIS STAGE WHETHER WE WILL BE ABLE TO GO INTO ANY MORE DETAIL ABOUT 1991 OR

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