TNAG-2989-FCO40-3575-Future-of-Hong-Kong-constitutional-development-talks-betwee-1992 — Page 68

RESTRICTED

0373

MDHIAN 7143

REVERSING ANY UNILATERAL CHANGES TO HONG KONG'S POLITICAL SYSTEM AFTER 1997 DID NOT/NOT REFLECT CHINESE GOVERNMENT POLICY.

5. PAAL AND CARLA HILLS TOLD LU PING THAT CHINA'S HANDLING OF RELATIONS WITH HONG KONG BEFORE 1997, INCLUDING THEIR ATTITUDE TO DEMOCRACY AND THE NEED TO ENSURE A SMOOTH TRANSITION, COULD BE A MAJOR FACTOR IN INFLUENCING FUTURE U.S. ATTITUDES TO MFN. CARLA HILLS SAID THAT CHINESE ACCESSION TO GATT

GATT WOULD NOT/NOT AUTOMATICALLY MEAN THAT THE U.S. WOULD GRANT CHINA UNCONDITIONAL MEN STATUS. CLARK (STATE) TOLD LU PING THAT THE AMERICANS FULLY SUPPORTED MORE DEMOCRACY IN HONG KONG. IT WAS IMPORTANT TO MAINTAIN THE CONFIDENCE OF THE INTERNATIONAL BUSINESS COMMUNITY. THE AIRPORT PROJECT WAS A KEY ELEMENT IN THIS. CLARK SAID THE TONE OF PEKING'S RECENT PUBLIC COMMENTS WOULD DO NOTHING TO FURTHER CONFIDENCE AND STABILITY IN HONG KONG.

RENWICK

YYYY

ΜΑΙΝ

68

DISTRIBUTION

77

.HK POLICY

HKD

NAD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

.AND MS BROOKS

NEWS D

PLANNERS

RAD

PS

PS/MR GOODLAD

SIR J COLES

MR APPLEYARD MR HUM

ADDITIONAL

9

CAOFF//SIR R BRAITHWAITE

CAOFF//MISS NEVILLE-JONES

CAOFF//MR SIBSON

CAOFF//MS D CORNER

CAOFF//MR CHARLTON PS/PM

NNNN

PAGE 2 RESTRICTED