TNAG-2451-FCO40-3568-Future-of-Hong-Kong-constitutional-development-1992 — Page 55

among Hong Kong's economic partners in the developed world,

influence with

with thei

and our

But None of these are cards which are likely to change Chinese

policy on an issue which they see as touching on their sovereignity. It is reasonably encouraging that Qian seems to have been given a new coordinating role on policy towards Hong Kong. He at least brings an awareness of the damage China will do to its (as the sources have aberas made cher to an ainen pits international interests by mishandling the Hong Kong problem.

Li Peng no doubt also retains influence, and an invitation to him to

visit London would be a considerable inducement. This would only

be worth offering if it looked likely to resolve the impasse in a

way which was acceptable to us.

I propose that at OPD (K) we conclude that we should:

continue to give firm support to the Governor's electoral

proposals

encourage the Chinese to enter serious discussions with us

and to put forward alternative ideas;

give the Governor discretion to amend his proposals if

alternatives emerge which meet the criteria he has laid down, and

which would help to sustain support in Hong Kong for his broad approach and possibly mute Chinese opposition (somewhat.

contain this row as far as possible, and show that we are

ready for cooperation with China both over Hong Kong and more widely: but equally, make clear to the Chinese that they can not

expect to behave as they have been doing towards Hong Kong without affecting the overall relationship with us.

D.H.

Foreign and Commonwealth office

12 November 1992

cab.off.SA

SLM