TNAG-2450-FCO40-3567-Future-of-Hong-Kong-constitutional-development-1992 — Page 10

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- Mr Goodlad and the Governor are developing a gameplan to ensure that the package is explained quickly to all with an interest on our side, as well as to key members of the opposition parties and to editors/political correspondents.

(Handling with the Chinese)

- A row with the Chinese over some of the proposals is almost inevitable. They will see the proposals on the Election Committee and functional constituencies as a substantial

dilution of their opportunity to exercise control over the

outcome of the 1995 elections. There are some things we can

do to increase the chances of containing this row:

(i) To give the Chinese advance indication of the main points to forestall a knee-jerk negative. I propose to do

this with Qian in New York on 25 September.

(ii) To secure as broad a base of support in Hong Kong as

possible.

(iii) To use the directly elected seats issue as a bargaining card to be given up at some point during the discussion. Share the Governor's view that we would not

have support in Hong Kong opinion for dying in a ditch on

this issue.

Early next year we shall need to go ahead to implement the proposals in substantially their present form, whatever the outcome of discussions with the Chinese.

The Chinese could react strongly to this: denouncing 1995 elections, beginning preparations for fresh elections in 1997, or even declaring all those elected in 1995 ineligible to serve beyond 1997. But that would be throwing down the gauntlet and

opd(k).NIG

SLM

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