pslt.hk.PETER
JEB
CONFIDENTIAL
anxieties in the business community, Hong Kong's economy remains robust, with 5.5% growth forecast for this year.
It should soon become clear whether the Chinese are willing to finesse the question of participation by Hong Kong representatives in the British team, and therefore allow talks to start. If they are, the talks themselves will be tough, and the Chinese will try to spin them out as long as possible. Our interest is to establish quickly whether the
Chinese are prepared to talk seriously about arrangements for the 1995 elections, and to give assurances that all
those elected in 1995 can in practice continue as members of LegCo beyond 1997 (the "through/train"). There is some evidence that the Chinese intend to use provisions in the Basic Law requiring members of LegCo to "uphold the Basic Law" as a means of weeding out Martin Lee and other liberals in 1997. We will not want/the talks to get bogged down: the Governor wishes to get the legislative process underway
in time for LegCo to enact legislation by the summer recess.
But our tactical handling of the issue will need to take
account of the strong community pressure in Hong Kong to give talks every chance of succeeding in the hope of
returning to a cooperative relationship with China, and the reluctance of some members of LegCo to debate a bill in parallel with Sino/British talks.
The Governor's next official visit to London will be in
November. The Prime Minister has agreed to speak at a conference in the City, which the Governor will also be
attending, on Investment in Hong Kong.
(Private Secretary)
CONFIDENTIAL
No comments yet.
Private notes are available after approval.