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072270 MDHIA 3937%
COMMITMENT ON A GENUINE THROUGH TRAIN IN TALKS MUST HAVE BEEN EXTREMELY REMOTE. BUT THE DIFFICULTY IN DISENGAGING FROM ANY TALKS WOULD HAVE BEEN GREAT. THE LEVEL OF VITUPERATION IF WE HAD HAD TO DO SO WOULD ALMOST CERTAINLY HAVE BEEN EVEN GREATER THAN IT HAS BEEN THIS WEEK.
5. IF LU PING SAYS THAT TALKS ARE IMPOSSIBLE I DO NOT WANT US TO
GO THROUGH ANOTHER MONTH OR SO OF UNCERTAINTY TRYING TO CHANGE THAT POSITION, ALTHOUGH NATURALLY WE MUST NOT SAY THAT WE ARE NOT PREPARED TO TALK. YESTERDAY'S NEWS WAS GLUM BUT THE HANG SENG INDEX ROSE 200 POINTS AFTER HEARING WHAT LU SAID, WHICH SEEMS TO UNDERLINE THE WISH OF MANY FOR CERTAINTY. SO I THINK WE SHOULD NOW INTRODUCE THE LEGISLATION TO LEGCO AS SOON AS POSSIBLE. IN PRACTICE THIS MEANS 31 MARCH. IF THE PRESENT LEVEL OF CHINESE INVECTIVE CONTINUES I WOULD NOT BE SURPRISED IF LEGCO ENDED UP BY AMENDING MY PROPOSALS ON THE FUNCTIONAL CONSTITUENCIES AND THE ELECTION COMMITTEE INTO A FORM WHICH, WHILE STILL OPEN AND FAIR, WAS CLOSER TO CHINA'S DEFINITION OF THE BASIC LAW.
SUBJECT TO YOUR VIEWS, I PLAN TO PUT TO EXCO NEXT WEEK THE PROPOSAL FOR INTRODUCTION ON 31 MARCH. I WOULD EXPECT
6.
TO ASK US TO WAIT UNTIL 21 APRIL, EVEN THOUGH C H TUNG HIMSELF HAS TOLD ME THAT HE SEES NO PROSPECTS NOW FOR TALKS. HOWEVER INTRODUCTION ON 31 MARCH WOULD AVOID THREE FURTHER WEEKS OF UNCERTAINTY AND WOULD ALLOW LEGCO TO START ITS CONSIDERATION OF THE BILL IN COMMITTEE (AS PREVIOUSLY MENTIONED IT CAN DO THIS DESPITE THE RECESS).
ECONOMIC ISSUES
7. I SEE NO ALTERNATIVE, INSOFAR AS ECONOMIC ISSUES ARE CONCERNED, TO CONTINUING TO TEST CHINESE PROFESSIONS OF A WISH TO MAINTAIN PROSPERITY IN HONG KONG. IN PRACTICE I EXPECT THEM TO DRAG THEIR FEET AT LEAST UNTIL THE LEGISLATION ON CONSTITUTIONAL DEVELOPMENT HAS BEEN PASSED BY LEGCO. THAT IS ANOTHER ARGUMENT FOR GETTING THE LEGISLATION INTO THE COUNCIL. I WOULD NOT RECOMMEND A GENERAL APPROACH TO THE CHINESE WHICH SEEKS TO GAIN THEIR SUPPORT ON ECONOMIC ISSUES ON WHICH WE HAVE TO CONSULT THEM EVEN IF WE CANNOT AGREE ON POLITICS. THEY WOULD BE ALL TOO LIKELY TO SEE THAT AS AN ATTEMPT TO GAIN OUR WAY ON ECONOMIC ISSUES WHILE SETTING UP OUR OWN STOVE POLITICALLY, AND HENCE CONCLUDE THAT IT MUST BE COMPREHENSIVELY REJECTED. RATHER I THINK WE SHOULD PUT ISSUES TO THEM ONE BY ONE IN THE APPROPRIATE FORA, LAYING THE ONUS ON THEM TO DISAGREE.
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