TNAG-2456-FCO40-3577-Future-of-Hong-Kong-constitutional-development-presentation-1992 — Page 39

RESTRICTED

NIEU

and

to make a judgement on the best way forward;

ultimately it will be for LegCo to decide whether to approve legislation.

In

Among Hong Kong politicians, Baroness Dunn was quick

to welcome the speech ("ambitious and vital"). Allan Lee

and his group, who are the main losers from the reshuffle

of ExCo, have been subdued but not critical: indeed Selina

Chow has been helpful in public. Martin Lee has varied his tone depending on the audience. In the Guardian on 8

October he was critical of his exclusion from ExCo,

ascribing this to unwillingness to stand up to Peking.

comments to the Hong Kong media he has been more

restrained, expressing disappointment about ExCo but welcoming the electoral proposals provided that the

Governor had the stomach to stand up to the Chinese.

Lau (who is normally a strident critic) gave the

Governor 60% for the speech. The business community have

been positive (the Hong Kong Association put out a

welcoming statement here) and the markets have responded

well, despite the signs of disagreement with China:

Hang Seng ended the week up 41 points.

-

Emily

the

The Governor will continue his public meetings and

other presentational activities next week. The Foreign

Secretary has an article in the Sunday Times on 11 October.

We have not yet seen the considered Chinese reaction.

Yours ever, Rochaw

(RH T Gozney)

Private Secretary

J S Wall Esq

10 Downing Street

RESTRICTED