CONFIDENTIAL
046345 MDLOAN 5293
5.
HUM SAID THERE SEEMED TO BE THREE ASPECTS OF THE RECENT SLIGHT MODERATION OF THE CHINESE LINE. FIRST, THERE WAS NOW A CLEARER PERCEPTION ON THE CHINESE SIDE THAT ALTERNATIVES TO THE GOVERNOR'S PROPOSALS WOULD BE PUT FORWARD AND DEBATED IN LEGCO. SECONDLY, IT WAS POSSIBLE THAT THE CHINESE LEADERSHIP WAS GIVING GREATER WEIGHT TO THE INTERNATIONAL IMPLICATIONS OF THE HONG KONG DISPUTE AND TO THEIR OWN STRATEGIC INTERESTS. THIRDLY, IT WAS POSSIBLE THAT CHINA WAS BECOMING MORE CONCERNED ABOUT ITS OWN ECONOMIC INTERESTS IN HONG KONG AND ELSEWHERE.
6.
LEVITTE ASKED WHETHER THE CHINESE WERE CONSULTED IN ADVANCE ON THE GOVERNOR'S PROPOSALS, OR WHETHER THEY HAD COME AS A SURPRISE? SIR J COLES REPLIED THAT THE CHINESE HAD BEEN GIVEN AN ADVANCE TEXT OF THE GOVERNOR'S SPEECH AND THAT THE MATTER HAD BEEN DISCUSSED WHEN THE SECRETARY OF STATE MET QIAN QICHEN IN LATE SEPTEMBER. THE CHINESE COMPLAINED THAT THEY HAD NOT BEEN CONSULTED, BUT THE CHINESE CONCEPT OF CONSULTATION SEEMED TO INVOLVE MONTHS OF DETAILED DISCUSSIONS AND TO ASSUME THAT AGREEMENT HAD TO BE REACHED. THEY WERE GIVEN THE OPPORTUNITY TO COMMENT BUT DID NOT ENGAGE.
7.
LEVITTE COMMENTED THAT THE CHINESE REACTION TO THE GOVERNOR'S MODEST PROPOSALS WAS ASTONISHING. IT SEEMED TO BE MORE A QUESTION OF FACE THAN OF SUBSTANCE. THE PROPOSALS DID NOT AFFECT THE STABILITY OF HONG KONG. THE DISPROPORTIONATE CHINESE REACTION COULD HAVE A DRAMATIC EFFECT ON THE PROSPERITY OF HONG KONG AND FRIGHTEN THE TAIWANESE AWAY FROM REUNIFICATION WITH
CHINA.
8.
SIR J COLES SAID THAT DENG XIAOPING SEEMED TO BE DIRECTING POLICY ON HONG KONG PERSONALLY. THE CHINESE HAD A MISFOUNDED FEAR OF SUBVERSION FROM HONG KONG AND WERE UPSET AT THE ALLEGED FAILURE TO CONSULT. POLITICALLY IT WOULD HAVE BEEN IMPOSSIBLE TO HAVE IMPOSED A SECRET DEAL ON HONG KONG.
9.
THE UK DID NOT WANT TO GIVE THE IMPRESSION THAT IT WAS ORCHESTRATING AN INTERNATIONAL CAMPAIGN AGAINST CHINA OVER HONG KONG. HOWEVER, IT WOULD BE VERY USEFUL IF FRANCE, AS A MAJOR ECONOMIC PARTNER OF HONG KONG, COULD EXPRESS IN PRIVATE AND BUSINESS CONTACTS WITH THE CHINESE THE IMPORTANCE OF CONTINUED PROSPERITY AND STABILITY IN HONG KONG, AND ITS SUPPORT FOR THE GOVERNOR'S PROPOSALS. THE UK WAS MAKING THIS REQUEST ONLY TO A
FEW CLOSE PARTNERS.
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