House of Lords Westminster
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Mr Fung, while not given it specifically, did feel that the letter may well have eased the differences between the two Governments and he also has a very strong impression in discussions with other Officials that Officials are now speaking with a great deal more caution and less provocatively than they had earlier in the year and that this was an instruction from the top.
When I was in Hong Kong there was a very strong feeling that the PRC might well press for major changes prior to 1997 but his feeling from his meetings is that the PRC will focus negotiations for 1997 to be the target date for change and the remaining years to 1997 should be treated as a transition period seeking to ease the differences on the economic and manufacturing front between Hong Kong and the new economic zone on the borders of Hong Kong. Mr Fung, who had gone to Beijing with considerable anxiety, came away feeling much more confident that there was a greater understanding of the Hong Kong problem on the question of confidence and that steps have and will continue to be taken to cool the atmosphere.
Mr Fung also informed me that changes are being made of considerable importance in the New China News Agency. That very shortly, although there is no firm date, a Mr Xu. Jia. Tun. who is Chairman of Jian. Su. Province who, while described as a Professor of Foreign Affairs and Languages, does not speak English or Cantonese, will take over charge of the Agency. We understand that Mr Xu has been personally appointed by Mr Deng and by Mr Leow for this post and further that a Mr Li Chuan Win, who comes from the Shanghai Mayor's Office and has responsibilities for Foreign Connections within the Mayor's Office, will become No.2. Mr Fung does not believe that either of these two appointments should be seen as being part of the negotiating processes but perhaps as a means of providing the PRC with a closer and more intimate understanding of the problems of Hong Kong. Both these men are more than well known to Mr Fung and in particular Mr Xu and he speaks very highly of them in calibre and he most certainly will seek to build on his existing friendship with them.
cont'd....