CONFIDENTIAL
HONG KONG: OPD(K): 18 NOVEMBER
Points to Make
Congratulate Governor on reception of his proposals in Hong Encouraged by resilience of Hong Kong opinion, even though signs of jitters in the business community.
Kong.
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On the Chinese approach, talks with Zhu Rongji on 17 November confirmed they are sticking to the unyielding line laid down by Deng. Expect them to continue to intensify their campaign in Hong Kong up to the LegCo vote on the Governor's proposals with the aim of frightening LegCo members and the business community.
Beyond that, if the Governor's proposals pass in their present form, must expect the campaign to continue.
[Invite Sir R McLaren to elaborate]
their
and
There are also constraints operating on the Chinese: own interests in an economically successful Hong Kong: the international reactions, particularly in the US, to a sustained campaign of intimidation.
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Zhu Rongji also seems to have pursued the Chinese tactic of keeping British commercial interests in China separate from the Hong Kong dispute. But he was prepared to threaten publicly in his Chatham House appearance a different approach. They could well seek to exert pressure on us in this area if
the row escalates.
ptm.OPD18Nov.PETER
JEB
CONFIDENTIAL
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