TNAG-2707-FCO40-3913-Hong-Kong-political-parties-Cooperative-Resources-Centre-(CR-1993 — Page 13

Note for File

MUB 011/4 10146221 MM15011/4

CONFIDENTIAL

INDL

25 JAN TO

RECORD OF A CALL ON MR GOODLAD BY MR ALAN LEE AND COLLEAGUES OF THE COOPERATIVE RESOURCES CENTRE (CRC), 19 JANUARY

Present

Mr Goodlad

Mr Dorey

Mr Ricketts

Mr Morris

Mr Lee Mr Arculli Mr Cheong Mrs Chow

Mr Ho Mr Tang Mr Young Mr Clark

W14

1. Mr Goodlad welcomed Mr Lee and colleagues from the CRC. He welcomed this opportunity to have first-hand advice from the CRC. Mr Lee said the group had had a good meeting with the Prime Minister and the Secretary of State. He explained that they had expressed their concerns about the deterioration in Sino/British relations and had offered proposals in their position paper. Hong Kong faced serious uncertainties if the impasse was not resolved. What the CRC feared most was that, if China felt discussion with the British side was impossible, they would set up separate machinery to "ensure a smooth transfer". Such action would split the Hong Kong community. Selina Chow suggested that in dealing with the Chinese not only the substance of the debate but the mechanism was important; the CRC feared that if the Governor's proposals were put to LegCo unamended the Chinese might interpret this as a signal that HMG and HKG were resolved to pursue their original proposals without compromise and without taking account of China's views. Once tabled in legislative form HMG and the Governor would lose control of the process. This could trigger further measures against Hong Kong from the Chinese.

2.

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Mr Goodlad explained that, looked at from a wider perspective, Sino/British relations were currently very good. Recent visits (by Vice-Premier Zhu Rongji and the Mayor of Shanghai to London and by Lord Prior and Mr Needham to China which as Mr Needham had said promised substantial contracts for British firms) attested to the strength of the bilateral relationship. We were however in disagreement over the electoral arrangements for 1995 for Hong Kong. But there was no impediment to discussion of these matters from the British side; not a day went by when Mr Goodlad did not repeat our desire for discussion with China, and the Prime Minister and Foreign Secretary regularly restated this position. He was confident that after a period of mature discussion in LegCo it should be possible to reach an agreement which, while not necessarily being anyone's first choice, would be broadly

record.lee.MORRIS

JEB

CONFIDENTIAL