SHENZHEN ON 23 JULY THE CHINESE SIDE SAID THAT CONTRACTS WOULD RE SIGNED IN SEPTEMBER AND THAT THE BRITISH AND FRENCH GOVEMENTS WERE INFORMED OF THIS DURING RECENT VISITS OF SENIOR CHINESE GOVERNMENT OFFICIALS TO EUROPE. THIS DOES NOT ENTIRELY ACCORD WITH THE ADVICE GIVEN BY XU JHATUN TO MARIA TAM AND ALLAN LEE ON 23 JULY (PARAGRAPH 3 OF OUR TELNO 2405).
4. THE ISSUE OF TIMING WAS RAISED BY MISS TAM THIS MORNING IN THE COURSE OF A GENERAL DISCUSSION WITH YAXLEY ON LIKELY DEVELOPMENTS ON THE DAYA BAY FRONT OVER THE NEXT FEW WEEKS. SHE ASKED FOR CONFIRMATION THAT IT WAS OUR UNDERSTANDING THAT THERE WOULD BE NO SIGNING OF CONTRACTS UNTIL UNOFFICIALS HAD COMPLETED THEIR VISITS AND REPORTED. YAXLEY EXPLAINED THAT IN ACCORDANCE WITH CHINESE PRACTICE A SIGNED CONTRACT HAD NO EFFECT UNTIL IT WAS RATIFIED BY A HIGHER AUTHORITY AND THAT IT WAS THIS PATIFICATION RATHER THAN THE ACUTAL DATE OF SIGNATURE TO WHICH THE FINANCIAL SECRETARY HAD BEEN REFERRING #N HIS SPEECH. MISS TAM EXPRESSED SURPRISE AT THIS AND POINTED OUT THAT THIS SUBTLETY WOULD BE LOST ON THE PEOPLE OF HONG KONG. SHE MADE THE POINT WHICH WE HAVE ALREADY MADE HN OUR TENO 2191 THAT THE SIGNING OF CONTRACTS BEFORE THE UNOFFICIALS CAN PRODUCE THE IR REPORT (WHICH IS UNLIKELY TO BE BEFORE MID SEPTEMBER AT THE EARLIEST) WOULD BE HIGHLY PROVOCATIVE. SHE SAID THAT HE THIS HAPPENED WE COULD EXPECT HER RESIGNATION AS CHAIRMAN OF THE UMELCO PANEL ON DAYA BAY AND A MAJOR PUBLIC ROW.
5. OUR ASSESSMENT HIS THAT SIGNING OF THE CONTRACTS BEFORE THE UNOFFICIALS HAVE PRODUCED THE IR PEPORTS HOULD, INDEED, RESULT IN A MAJOR POLITICAL EXPLOSION HERE.
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6. WE SHOULD RE GRATEFUL, THEREFORE, IF YOU COULD GET THIS MESSAGE OVER TO THE CHINESE AT AN APPROPRIATE LEVEL WARNING THEM OF THE PROBLEMS THAT WILL BE CAUSED AF SIGNING PRECEDES THE UMELCO REPORT. IT WILL BE IMPORTANT TO EXPLAIN THAT WHILE WE FULLY APPRECIATE THAT THE CHINESE DO NOT CONSIDER A CONTRACT TO BE VALID UNTIL IT HAS BEEN RATIFIED, THE ACTION THAT COUNTS IN HONG KONG IN THE CIRCUMSTANCES OF THE DAYA BAY CONTRACTS IS THE ACTUAL ACT OF SIGNING, WE CANNOT AFFORD TO LOSE WHAT LITTLE SUPPORT WE HAVE IN UMELCO. WE SHALL OF COURSE DO ALL WE CAN TO SPEED UP THE UMELCO REPORT.
AKERS-JONES
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FC040/2059