TNAG-2732-FCO40-3938-Future-of-Hong-Kong-constitutional-development-1993 — Page 162

SECRET

126130 MDHIAN 5575

SECRET

FM PEKING

TO DESKBY 31090OZ FCO

TELNO 455

OF 31085OZ MARCH 93

INFO IMMEDIATE HONG KONG, UKREP JLG HONG KONG

PERSONAL FOR RICKETTS, HKD

HONG KONG PERSONAL FOR PS/GH

UKREP JLG PERSONAL FOR GALSWORTHY

RICKETTS' FAX TO DINHAM OF 29 MARCH: HONG KONG:

DISCUSSION PAPER

1. THE DRAFT COVERED BY YOUR FAX SEEMS TO ME TO INCLUDE THE RIGHT POINTS AND SHOULD PROVIDE A GOOD BASIS FOR DISCUSSION AT THE SECRETARY OF STATE'S MEETING. I HAVE TWO GENERAL COMMENTS.

2.

I NOTE THAT YOU HAVE INCORPORATED THE SECRETARY OF STATE'S VIEW (IN FCO TELNO 296 TO HONG KONG) THAT THE BALANCE OF ADVANTAGE LIES IN FAVOUR OF TALKS IF THEY CAN BE ARRANGED ON AN ACCEPTABLE BASIS. YOU HAVE ALSO BROUGHT OUT THE FACT THAT TALKS ARE UNLIKELY TO BRIDGE THE GAP BETWEEN THE TWO SIDES. BUT IF WE ARE TO MAKE EVERY EFFORT TO REACH AGREEMENT AND TO BE SEEN BY THE HONG KONG COMMUNITY TO BE DOING SO · I THINK WE SHALL HAVE TO ALLOW SUFFICIENT TIME FOR THE PROCESS TO MATURE: THERE WILL BE NO AGREEMENT IF WE HAVE TO OPERATE UNDER TIGHT (BRITISH-IMPOSED) DEADLINES. HERE THE BRITISH AND CHINESE TIMING CONSIDERATIONS COME INTO SHARP CONFLICT. WE WILL WANT TO CONCLUDE THE PROCESS AS SOON AS POSSIBLE, WHETHER OR NOT AN UNDERSTANDING CAN BE REACHED: THE CHINESE WILL WANT TO PROLONG IT ALMOST INDEFINITELY. THE POINT ABOUT THE TIMING DILEMMA WE ARE LIKELY TO FACE IS WELL MADE IN PARA 13 OF THE DRAFT.

3. MY SECOND GENERAL POINT CONCERNS THE OBJECTIVE OF MAINTAINING AN EFFICIENT AND EFFECTIVE ADMINISTRATION IN HONG KONG UP TO 30 JUNE 1997. THE JUDGEMENTS WHICH WILL NEED TO BE MADE ARE ONES FOR THE GOVERNOR, NOT ME. BUT WE DO HAVE TO FACE THE PROSPECT THAT IF THERE IS NO AGREEMENT WITH CHINA AND WE GO OUR OWN WAY, THE CHINESE WILL SEEK TO MAKE LIFE AS DIFFICULT AS POSSIBLE FOR US. THAT POINT IS NOT DUCKED IN THE PAPER, BUT I WONDER IF WE SHOULD BRING OUT MORE STARKLY THE LIKELY EFFECTS OF CHINESE EFFORTS TO ''POLARISE THE CIVIL SERVICE AND UNDERMINE THE AUTHORITY OF HKG'' (THIRD TIRET OF PARAGRAPH 9 OF YOUR DRAFT). THE FIFTH TIRET OF PARAGRAPH 11