EELACF
CONFIDENTIAL
The
4. I argued in my submission of 15 August, and I remain of the view, that we should refrain from a formal reply to the FAC report until we have substantive decisions on the nationality package. Home Office is reluctant to predict when the nationality package might be finalised, but our present strategy is to make an announcement a decent interval after the visit to Hong Kong of Their Royal Highnesses the Prince and Princess of Wales, 11-12 November, and a similar decent interval before the Secretary of State's visit in January. Should the package slip, we may have to face the prospect of delaying the announcement and our formal response to the FAC report until the New Year.
5. The Secretary of State has commented that he should speak to Mr Howell (probably at the Conservative Party Conference) about the complications of the report. We have confirmation that Mr Howell will not be attending the Conference. I understand that the
Secretary of State will be unable to see Mr Howell before late
October or early November. While it would be preferable for the Secretary of State to have a private word with Mr Howell, I do not think that the matter can wait any longer. The enclosed letter for the Secretary of State's signature sets out the problem and seeks Mr Howell's confirmation that he is content to delay our reply.
6. In the meantime, we are working on a reply to the report. This will comply with the requirements of the PUS's circular 38/89 of 10 February 1989, in attempting to be "as full and constructive as
possible in commenting on [FAC] enquiry reports". It will contain 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 tearing up the Joint Declaration is not an option, but that it
remains a firm base for the future.
b) Basic Law. We can fully endorse the comment in the report that the restoration of confidence rests upon China - its actions as well
as its words. The reply will make clear that the need for the Chinese to demonstrate full commitment to the Joint Declaration and, in the Basic Law, demonstrate willingness to take account of
to
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