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Redacted under FOI exemption 27(1)

2

176117 MDHIAN *1

HAS COMMENCED, AND PROBABLY NOT UNTIL THE MID-90S.

(B) THE CHINESE COULD OF COURSE BE DIFFICULT ABOUT AGREEING AN INCREASE IN THE 50 HECTARE LIMIT IN FUTURE YEARS, AND WE SHALL CERTAINLY NEED MUCH MORE THAN 50 HECTARES EACH YEAR UP TO 199# IF WE ARE TO ACHIEVE OUR DEVELOPMENT PLANS. BUT, SHOULD THEY DO SO, THEY WOULD BE VERY OBVIOUSLY DAMAGING HONG KONG'S FUTURE DEVELOPMENT, AND THEIR OWN LONGER-TERM INTERESTS.

(C)

MORE GENERALLY, THE CHINESE COULD ADOPT A TOUGHER LINE ON OTHER JLG BUSINESS, AND ON THE BASIC LAW. BUT JLG BUSINESS HAS BEEN VERY MUCH A ONE-WAY PROCESS SO FAR, WITH ALMOST ALL NORMAL WLG WORK BEING INITIATED BY THE BRITISH SIDE. IN ANY EVENT THE JLG IS A JOINT BODY WHICH HAS TO COMPLETE A HUGE AMOUNT OF WORK BY 1997: THEY NEED OUR CO-OPERATION AT LEAST AS MUCH AS WE NEED THEIRS. SO WE DOUBT IF IT WOULD BE IN THEIR INTERESTS TO FRUSTRATE PROGRESS ON OTHER JLG ISSUES. NOR DO WE THINK IT PROBABLE THAT OUR PROCEEDING WITH THE CENTRAL-WANCHAI RECLAM- ATION WILL SIGNIFICANTLY INFLUENCE THEIR THINKING ON UNRELATED ISSUES IN THE BASIC LAW ON WHICH THEY MAY, IN ANY CASE, BE DIFFICULT. LOOKED AT THE OTHER WAY A DECISION TO DELAY THE RECLAMATION IS UNLIKELY TO RESULT IN ANY CONCESSIONS FROM THE CHINESE ON, FOR EXAMPLE, THE FUTURE POLITICAL STRUCTURE.

11.

WE ARE DISCUSSING WITH UKREP JLG THE PRECISE TIMING AND TACTICS TO BE ADOPTED/OR DISCUSSION OF THE DEFENCE ISSUE IN JLG XIII AND WILL TELEGRAPH OUR THOUGHTS ON THIS SEPARATELY.

WILSON

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