TNAG-2730-FCO40-3936-Future-of-Hong-Kong-constitutional-development-1993 — Page 29

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12.

These steps should keep the public momentum behind the

Governor's proposals up to the point at which they are tabled,

but also ensure that alternatives which move in the direction of

Chinese concerns are discussed privately with China and then

tabled. It will then be up to LegCo to establish the best point

of balance. This puts a considerable responsibility on them. There is no guarantee that it will produce a satisfactory result.

The best outcome would be the emergence of a compromise package with which no one faction in LegCo was entirely content but which

met our objectives of free and fair elections, and also dealt

with the points which the Chinese have indicated privately cause

them most difficulty. I would expect such an amended package to

be greeted with considerable relief in Hong Kong. That may make

it easier to build a respectable LegCo majority for it although the risk remains that an amended package will satisfy neither of the main camps in LegCo.

13.

It is almost certainly too much to hope that we would be

able to secure Chinese acquiescence in whatever emerges from LegCo. But their latest comments suggest that they will be prepared to calibrate their reactions to reflect the outcome of

LegCo discussion. Direct discussions with China will still be desirable at some point to make the most of any changes which LegCo intend to adopt. My next six-monthly meeting with the Chinese Foreign Minister (which is due to take place in the

Easter recess) should be well timed for that: provided that the

Chinese do not make a meeting impossible by imposing unacceptable

preconditions.

14.

We should not overlook the levers we hold. The main one is

the risk of international pressure on China from Hong Kong's

economic partners if the Chinese push too far in Hong Kong. We

do not want to exacerbate Chinese conspiracy theories. Our

objective should be to ensure that the Chinese would pay a high

price in international terms if they damage Hong Kong by their

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