TNAG-2730-FCO40-3936-Future-of-Hong-Kong-constitutional-development-1993 — Page 25

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THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED UNDER

FOI EXEMPTION NO....27(0

Work in the Joint Liaison Group came to a standstill. There were suggestions in the press and from other sources that the Standing

Committee of the National People's Congress (meeting from 22 to 28 December) would establish a committee with representation from

China and Hong Kong to make unilateral preparations for Hong Kong's post-1997 institutions. Some reports suggested that this body could be given a role to interfere in pre-1997 matters such as contracts and franchises. There were also signs that Chinese

officials had been told to draw up contingency plans for even more severe measures, including in extremis an early takeover.

5. However, since mid-December, Chinese spokesmen have however

moderated the tone of their public statements, and have publicly

ruled out a number of the more extreme measures which had earlier

been mooted. The main signs have been:

(1)

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