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could trigger further measures against Hong Kong from the
Chinese.
2.
-
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
acceptable to all parties. He did not share the CRC's
pessimism, but he did share their determination to resolve the present difficulties.
3.
Various members of the group expressed doubt about the health of the wider bilateral relationship and suggested that if relations were so good, it was all the more puzzling why there was no dialogue. As they saw it from Hong Kong's
perspective, relations were bad. Howard Young recalled that
he had told the Prime Minister at the end of their meeting "I
share your hope but not your optimism". The group intended to visit Peking to urge the Chinese side to discuss these
matters. If the Chinese were equally optimistic about
Sino/British relations the CRC would be reassured, but he
feared the British were misreading the Chinese. Mr Goodlad
said that our policy was to discuss these matters with China in the spirit of cooperation and aiming for a smooth
record.lee.MORRIS
JEB
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