}
CONFIDENTIAL
8.
Seek further extension for arrangements on BA's Hong Kong-
Peking service.
9. Seek greater role for Cathay Pacific in Hong Kong-China
services.
UN Law of the Sea Convention (defensive only)
10. Did not prevent EC signing; but not helpful internationally
to sign Convention with important flaws.
11. Open to us to sign, if improvements.
B.
TRADE
1.
Welcome Chinese expressions of wish for trade to grow
faster.
2. Energy, transport, telecommunications, industrial modernisation, agriculture and defence are good prospects.
Useful meeting
Propose mission led by Lord Young.
3. Momentum of high level visits important.
with Governor of Guangdong.
4.
On Guangdong Nuclear:
i)
welcome progress towards Joint Venture agreement. Full confidence in Lord Kadoorie and China Light and Power. (Defensive: hope Hong Kong Government will approve shortly).
ii) Concerned to have contract signed by 15 January:
timetable for commercial negotiations? (Defensive: difficult to extend interest rate beyond that date). iii) Decision to move China into top ECGC credit premium category. Rate for Guangdong now most favourable possible; but premium not negotiable beyond this.
CONFIDENTIAL
/5.