CONFIDENTIAL
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(2)
(B)
(1)
(2)
ལུ
(C)
ACCEPTED THE NEED FOR CONVERGENCE AND HAD INITIATED A
USEFUL DIALOGUE. BUT THIS DIALOGUE MUST BE A TWO-WAY
PROCESS, AND IT WOULD BE HELPFUL TO KNOW CHINESE THINKING
ON BASIC LAW. PAO DID NOT DISSENT BUT MADE NO REAL
COMMENT.
PAO SCHOLARSHIP FUND: THE SECRETARY OF STATE WELCOMED THE
SCHEME, UNDERLINED THE NEED FOR PROGRESS, AND SUGGESTED
EARLY TECHNICAL DISCUSSIONS IN LONDON BETWEEN BRITISH,
CHINESE AND PAO'S EXPERTS. PAO AGREED, AND SAID HE
INTENDED TO PURSUE THIS IN MORE DETAIL WITH MR RAISON.
WITH MR RENTON:
SCHOLARSHIP FUND: PAO EXPLAINED THAT THE CHINESE HAD
AGREED TO FUND THE SCHEME, LIKE HMG, THROUGH ANNUAL
PAYMENTS. HE HOPED IT WOULD PROVIDE SCHOLARSHIPS FROM
THE START OF THE 1987 ACADEMIC YEAR. HE HOPED THE TITLE
OF THE SCHEME COULD COMMEMORATE THE JOINT DECLARATION.
REPRESENTATIVE GOVERNMENT: PAO SPOKE ON FAMILIAR LINES
ABOUT THE NEED TO MAKE HASTE SLOWLY. HE BELIEVED IT
WOULD BE ESSENTIAL TO HAVE A STRONG BRITISH GOVERNOR UP
TO 1997.
WITH PRIME MINISTER: RESUME OF PAO'S OTHER DISCUSSIONS.
HE SAID THAT HE HAD HAD USEFUL DISCUSSIONS WITH MR RAISON
ON THE SCHOLARSHIP SCHEME, AND WITH THE BRITISH COUNCIL
ON THE PROVISION OF ENGLISH TEACHERS FOR NINGBO.
3.
PAO ALSO LUNCHED WITH DAVID WILSON ON 21 MARCH. THE SAME
GROUND WAS COVERED ON SCHOLARSHIPS. ON DRAGON AIR, WILSON
REITERATED THAT THE CHINESE SHOULD FULFIL THEIR OBLIGATION TO
ALLOW CPA ON TO THE PEKING ROUTE: CAAC HAD BEEN PLAYING HARD TO
GET ON THIS AND OTHER MATTERS. PAO SAW NO PROBLEM ABOUT CATHAY:
AND SAID CAAC SENIOR MANAGEMENT WERE NOW BEING REORGANISED. HE
COMPLAINED THAT CAD HAD YET TO AUTHORISE HIS CHARTER TO TRANSPORT
BLDC MEMBERS TO PEKING. WILSON REPLIED THAT HONG KONG WERE
AUTONOMOUS IN SUCH MATTERS, AND WERE DOUBTLESS FED UP WITH CAAC.
ON REPRESENTATIVE GOVERNMENT PAO SAID HE HAD ALWAYS OPPOSED
DIRECT ELECTIONS. WILSON SAID THAT THE ISSUE MUST BE FLOATED IN
THE REVIEW, AND IF THERE WAS THEN CLEAR PUBLIC DEMAND FOR DIRECT
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CONFIDENTIAL