TNAG-2917-FCO40-4192-International-support-from-Australasia-regarding-the-future--1993 — Page 7

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China,

Britain's lack of sincerity had produced stalemate. by contrast, had shown itself willing to compromise, for example on the voting age. But the British kept introducing new factors. Liu claimed that, if there were sincerity on both sides, agreement could still be reached otherwise not.

5.

Asked what was the nub of the problem, Liu told McKinnon that China had agreed that Hong Kong should keep its capitalist system. But China could not agree that Hong Kong be used to challenge the political system in China. Some of the elected councillors intended, having travelled to China on the through train in 1997, to begin subverting China from the inside. For that reason, China did not want them on the train at all.

6.

Liu added various stray remarks. Britain's policy was to spend all Hong Kong's money before it left, then to leave agents in place beyond the handover. Liu had served in Ghana for eight years and had seen Britain's post-colonial policies in action before. Liu also claimed that the Governor had a personal agenda: he planned to seek re-election in Britain after leaving the job in Hong Kong, and was pursuing his own interests over the heads of the people of Hong Kong, even of the government in London. Liu added that if there were no resolution of the present impasse by 1997, China would start anew with its own arrangements (ie the second stove).

7.

McKinnon moved the subject on to economic prospects. Liu claimed, quoting a statement from Morgan Stanley, that people in the US and Europe were not worried about Hong Kong: they had every confidence in Hong Kong's future. what was the fuss about?

8.

Maintain

So

I asked whether McKinnon had not spoken up for the efforts to introduce democracy and stability in Hong Kong. Carter said New Zealand had made these points before, but not on this occasion (comment; this is disappointing, as I made clear to Carter, but MFAT act cautiously in any contacts with Asian governments on sensitive topics).

9.

Carter noted that the Governor planned to visit Australia in February. Sir David Wilson had planned to visit Australia and New Zealand while in office; even though the New Zealand leg of that trip fell through, he later visited New Zealand separately. Mr Patten would be welcome if he were able to visit New Zealand at any stage, if not in February (time was too short to make arrangements now), then at some future date. I said I would pass it on.

:)

/ Grateful

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