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Government at an early stage how it intends to handle Hong Kong and implement the Joint Declaration over the next five years. This should be a prime objective of any initial strategy session with Ministers and we should speak to the Chinese privately before the next Ministerial visit to Hong Kong (when public statements are bound to muddy the water as far as Peking is concerned).
8. Mr Victor Fung, Baroness Dunn's successor as Chairman of the Trade Development Council, made an impassioned plea to us for better communication with Peking. Talking to China did not mean Hong Kong becoming a lame-duck nor did it need to imply weakness or uncertainty. Quiet contacts away from the media, meetings on neutral ground (Davos/Koenigswinter-type), business-led contacts, the use of contacts in the margins of international gatherings (APEC, PECC etc) - all would help to soften up the Chinese. Indeed he thought that almost every problem could have been more easily resolved if the Chinese had been talked to at an earlier stage and surprises avoided. He would be happy to play a lead role if desired.
9. Of course we have had some successes eg through the / confidential financial dialogue. But I attach a note on the
various possibilities we should bear in mind.
RA3.
R A Burns
EM8AAD
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