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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
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OBJECTIVE SHOULD BE TO ENSURE THAT THE CHINESE WOULD PAY A HIGH PRICE IN INTERNATIONAL TERMS IF THEY DAMAGE HONG KONG BY THEIR ACTIONS AND THAT THEY REALISE IT. I PROPOSE THAT WE SHOULD FOLLOW UP THE PRIME MINISTER'S DISCUSSION WITH PRESIDENT-ELECT CLINTON TO ENSURE THAT THE NEW US ADMINISTRATION AND CONGRESS UNDERSTAND OUR VIEWS ON HOW THE MFN CARD SHOULD BE PLAYED AND WHAT OTHER LEVERS THE US MIGHT BE ABLE TO USE AGAINST CHINA. OTHER COUNTRIES COULD ALSO BE ENCOURAGED TO SPEAK UP PRIVATELY
WITH CHINA.
15.
IN SHORT, OUR OBJECTIVE REMAINS A SET OF ELECTORAL ARRANGEMENTS FOR 1995 WHICH ARE DEMONSTRABLY OPEN, FAIR AND ACCEPTABLE TO THE PEOPLE OF HONG KONG. THE GOVERNOR SHOULD PUT HIS EXISTING PROPOSALS TO LEGCO IN FEBRUARY, ESSENTIALLY UNAMENDED. HE AND WE SHOULD CONTINUE TO EMPHASISE THAT WE WELCOME ALTERNATIVE PROPOSALS AND THAT WE WILL ABIDE BY LEGCO'S DECISION ON THE EVENTUAL SHAPE OF THE PACKAGE. WE SHOULD GET
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