CONFIDENTIAL

7

to future relations with China. Forgetting the sensitive issue of moral obligations, HK was a far more important market for Britain and the EEC than China and Japan and to let its economic system, and consequently its purchasing power, be destroyed over irrelevant historical arguments would be almost a criminal act. Both China and Britain wanted business as usual and were involved in a diplomatic chess game probably a friendly one.

Sino-British talks to resume next month: All three English-language papers gave front page treatment to the news from an official source that talks on the future of HK were likely to resume next month and that it was possible the Governor, Sir Edward Youde, would take an active part. The source said there was no evidence over the past few months that talks in the conventional sense had taken place, but there was a lot of activity. Progress of the 'talks' had slowed due to the busy schedules of Chinese leaders. China had held an NPC last month with some key changes among the leadership. In a bureaucratic autocratic country like China changes in the hierarchy disrupted the way of life to a certain extent, and this might be the cause of some hesitation in the course of the talks. From London, Michael Jones reported that the Governor was expected by officials to become more involved in the talks, with his visit being a prelude to a new phase in the British approach to reaching agreement. Jones wrote that Sir Edward's involvement would be in line with the British view that HK opinion must be taken fully into account and that the Colony's confidence must be bolstered while the search for a solution continued. Whitehall was

considering the timing of an official statement of progress in the talks, with an announcement around the middle of the year thought possible.

SCMP leader: A leader in the SCMP on 26 January headed: “A memorable decade", said it was apparent that in the last few weeks HK people had become resigned to the fact that there would be no quick resolution to our post-1997 status and that life had to go on as normally as possible in the meantime.

HK students hope to stay on in US: The Standard carried a story on 29 January which said the 1997 issue and the prospect that the US Government might grant an amnesty to illegal aliens had prompted some HK students to stay on in America illegally, according to students who had returned from the US.

Long wait for new airport: The Standard said a senior Government official had disclosed that two sites being looked at as sites for a new airport - Chek Lap Kok and Deep Bay were unsuitable, the former being too expensive, the latter having too many technical problems. The official hinted that a new search would have to be launched.

-

HK future more than local problem: The papers quoted Dr. John Young of HKU saying the future of HK was more than a local problem and both China and Britain would not let the issue affect overall Sino-British relations; sovereignty would not be the stumbling block for Sino-British negotiations and Britain would recognise that HK was part of China. He drew attention to the 1972 Sino-British communique which he believed to be of great relevance to the HK question.

Star leader supports Exco involvement in talks: On the report that Exco was involved in the talks. the Star in a leader said it felt this was of some significance because for the first time an attempt was being made to involve someone from HK in the negotiations.

CONFIDENTIAL

Share This Page