TNAG-2732-FCO40-3938-Future-of-Hong-Kong-constitutional-development-1993 — Page 163

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MDHIAN 5575

SPEAKS OF THE 'NEED TO DO WHAT WE CAN TO SUSTAIN MORALE IN THE CIVIL SERVICE'' THAT POINT MAY NEED EXPANSION. SO PERHAPS WILL THE TIRET DEALING WITH THE SCOPE FOR UNILATERAL ACTION: EXPERIENCE SO FAR SUGGESTS THAT THERE IS A REAL RISK THAT LEGCO WILL DECLINE TO VOTE FUNDS FOR PROJECTS PUBLICLY OPPOSED BY CHINA.

5.

MY DETAILED COMMENTS ARE AS FOLLOWS.

WHAT ARE WE SEEKING TO ACHIEVE (PARAS 2-4)

I) WE SUGGEST SPLITTING THE OBJECTIVES IN THE FIRST TIRET OF PARA

2, AND EXPANDING THE SECOND OF THEM, AS FOLLOWS:

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RUNNING HONG KONG EFFECTIVELY UP TO JULY 1997:

SECURING FULL IMPLEMENTATION OF THE UNDERTAKINGS IN THE JOINT DECLARATION IN ORDER TO PRESERVE, TO THE MAXIMUM EXTENT POSSIBLE, THE FREEDOMS AND WAY OF LIFE OF HONG KONG PEOPLE AND A HIGH DEGREE OF AUTONOMY FOR HONG KONG AFTER 1997.

II) PARA 3, THIRD SENTENCE:

'TRADE-OFFS' DOES NOT SEEM QUITE THE

RIGHT WORD FOR THE QUESTIONS WHICH NEED TO BE EXAMINED IN DISCUSSING POLICY OPTIONS.

III) PARA 3, FIRST TIRET: WATERING DOWN' 11 IS RATHER EMOTIVE. SOME CHANGES TO THE ORIGINAL PROPOSALS ARE LIKELY WHETHER AS A RESULT OF DEBATE IN LEGCO OR THROUGH NEGOTIATION WITH THE CHINESE. SO THE QUESTION SEEMS RATHER TO BE WHERE WE SET THE LEVEL OF WHAT ''FREE, FAIR AND ACCEPTABLE TO THE PEOPLE OF HONG KONG' MEANS AS A TARGET FOR US TO AIM FOR (PRESUMABLY WE WILL NOT BE ABLE TO DECIDE IN ADVANCE EXACTLY WHAT WOULD BE ACCEPTABLE IN HONG KONG, NOT LEAST BECAUSE FACTORS SUCH AS CHINESE PRESSURE AT THE TIME OF PUBLISHING ANY AMENDED VERSION WOULD HAVE GREAT INFLUENCE).

6. HOW CAN WE ACHIEVE OUR OBJECTIVES? (PARAS 5-8)

I) PARA 6: STATEMENTS BY CHINESE LEADERS ONLY SUGGEST THAT THEY WOULD BE WILLING TO HOLD TALKS WITH US ON THEIR TERMS. APART FROM THE QUESTION OF HONG KONG GOVERNMENT PARTICIPATION (NOT/NOT ''REPRESENTATION'') WE STILL HAVE TO DEAL WITH THE QUESTION OF SECRECY. ALTHOUGH AMBASSADOR MA DID NOT RAISE THIS WITH MR GOODLAD IT REMAINS A LOOSE END.

II)

PARA 7 (I), SECOND SENTENCE: THIS MIGHT BE RIGHT IF TALKS ARE

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