TNAG-1888-FCO40-2681-Visits-from-Hong-Kong-and-China-to-the-UK-1989 — Page 40

DSR 11C (Revised 5/87)

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We cannot of course add anything to what Dame Lydia

already knows about the size and content of the package

or the timing of an announcement. The Prime Minister

has previously explained to her that the package will be

as generous as possible within the practical and

political constraints; and that it will cover both the

public and private sectors. On timing, she has explained

that it would not help Hong Kong to rush an announcement

of the package before we had got the details right. The

Prime Minister may wish to confirm that an announcement

is not imminent. The Foreign and Home Secretaries intend

to submit a further paper for discussion by OD (K) on 26

October. We are aiming for an announcement after The

Prince of Wales' visit on 7-10 November and before the

Foreign Secretary's visit to Hong Kong in the New Year.

The Prime Minister might add that following the events

of 3/4 June we have been very active in international

fora on Hong Kong's behalf, stressing that Hong Kong's

continued success is in the interests of the entire

international community and that Hong Kong needs

international understanding and support. We intend to

make the same points at CHOGM next month.

On democratisation in Hong Kong, Dame Lydia may refer

to the proposal, recently put forward by OMELCO, that the

proportion of directly elected seats to Legco in the 1991

elections should be increased to 20 (current plans are

that there should be 10 seats).

The current draft of the