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SHOULD BE MAINTAINED. AS THINGS STOOD, THERE WAS THE ABSOLUTE
CERTAINTY THAT IN 1997 THE LEGAL BASIS WOULD COME TO AN ABRUPT
END. THIS WAS WHAT THE TWO SIDES NEEDED TO STUDY.
6. ZHAO ZIYANG AGREED THAT THE MATTER WAS VERY IMPORTANT. HE
SUGGESTED THAT, BEFORE WORKING OUT A CONCRETE FORMULA, NEITHER
SIDE SHOULD DO ANYTHING WHICH COULD HARM THE PROSPERITY OF
HONG KONG. THE LPS AGREED AND SAID THAT IN FACT THE ACTIONS
OF THE TWO SIDES SHOULD BE SUCH AS TO BOLSTER CONFIDENCE.
BOTH HAD A COMMON INTEREST IN PROMOTING CONFIDENCE IN HONG KONG
AND HELPING TO INCREASE IT.
7. PREMIER ZHAD SAID THAT HE HAD NOT YET HAD A DETAILED REPORT
OF THE GOVERNOR'S VISIT TO SHENZHEN BUT HE HAD HEARD THAT THE
GOVERNOR HAD SAID THAT HE WOULD ENCOURAGE MORE HONG KONG
CAPITAL INVESTMENT IN SHENZHEN. HE APPRECIATED THE GOVERNOR'S
APPROACH. THE LPS REMARKED THAT THE GOVERNOR HAD HMG'S SUPPORT
ON THIS.
8. BEFORE THE MEETING ENDED PREMIER ZHAO AGREED THAT IN TALKING
TO THE PRESS THE LPS COULD USE WORDS TO THE EFFECT THAT THE
LPS'S UNDERSTANDING OF THE CHINESE GOVERNMENT'S POSITION WAS
THAT, WHEN THEY CAME TO ADDRESS THEMSELVES TO THE QUESTION OF
THE FUTURE OF HONG KONG THEY WOULD TAKE INTO CONSIDERATION THE
PROSPERITY OF HONG KONG AS A FREE PORT AND A COMMERCIAL AND
FINANCIAL CENTRE.
9. AGREED RECORDS OF THIS AND THE MEETING WITH JI PENGFEI ARE
WITH THE LPS'S PARTY IN HONG KONG AND WILL BE DISTRIBUTED
FROM THERE.
16. COMMENTS FOLLOW.
CRADOCK
LIMITED
HD/HKGD
HD/FED
PS
PS/LPS
PS/PUS
MR GOODISON
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