TNAG-2921-FCO40-4196-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 40

FAX TRANSMISSION

CONFIDENTIAL

PA Jarchu

Our Reference:

22 December 1993

P Ricketts Esq, HKD, FCO

CC: M Dinham Esq,

Fax no

British

Trade Commission

Hong Kong

9th Floor, Bank of America Tower, 12 Harcourt Road, Hong Kong

Mail Address: GPO Box No 528, Hong Kong

Telephone: 523 0176

Telex: HX 73031 (a/b 73031 UKTRA HX) Facsimile: (852) 845 2870

Cable Address: UK TRADE, Hong Kong

Government House

Page 1 of 2

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CHINESE THREATS TO BRITISH COMMERCIAL INTERESTS

1.

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for you and Martin Dinham only my letter of 22 October to Martyn Baker in the DTI.

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2. On the constitutional issues, Gordon Wu said that Britain had done a vast amount for Hong Kong over the years. The Joint Declaration was a brilliant piece of diplomacy. So did we really have to make such a mess "in the twilight minutes of the game"?

3. The Chinese had got themselves into a paranoid state about the Governor's proposals, and they were getting in such a state over other developments in Hong Kong. Everything they heard about demands in Hong Kong for a Central Provident Fund and other social security provisions worried them enormously because they could see it creating pressures for the rest of

China.

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4. He really did not see that a slightly wider franchise, a few more functional constituencies would make a vast amount of difference. But if we really couldn't back down, then the only answer was for us to somehow find ways to establish some basis of trust. At the moment it was totally absent. The Chinese were full of conspiracy theories. They were old, they were frightened and they wouldn't give an inch in present circumstances. We should get them back behind closed doors, give a little bit on the substance, try to understand their problems, and try to calm them down. None of this would be at all easy not least because the Chinese could afford to play for time.

5. I don't think any of this is at all new and, indeed, I've heard much of it before from Gordon Wu. But I pass it on for what little it is worth.

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