CONFIDENTIAL

102670

MDHIAN 188

HONG KONG AND SHANGHAI BANK WHICH INCLUDES A SUBSTANTIAL BRITISH

INVESTMENT AND WHICH IN TURN OWNS A LARGE STAKE IN MIDLAND BANK:

AND SWIRE PACIFIC.

PAGE TWO, THIRD TIRET. REPLACE 'TEN A3JO AIRBUS AIRCRAFT'' BY ''TEN A330 AIRBUS AIRCRAFT WITH ROLLS ROYCE ENGINES.'

PAGE TWO, FOURTH TIRET. USE OF THIS ITEM AS A BULL POINT CALLS ATTENTION TO THE ORIGINAL UK DECISIONS TO DIFFERENTIATE BETWEEN HOME AND OVERSEAS STUDENTS FEES, AND TO CLASSIFY HK AS 'OVERSEAS'' IT IS NOT, THEREFORE, A BULL POINT AND COULD REBOUND BADLY IF PLAYED BACK HERE. SUGGEST DELETION.

PAGE TWO, FIFTH TIRET. THE NUMBERS QUOTED ARE VERY MODEST. PROBABLY BETTER DELETED.

PAGE TWO. SUGGEST NEW SIXTH TIRET (FIRST ITEM UNDER DIPLOMATIC/ POLITICAL) TO READ: ''BRITAIN'S MOST IMPORTANT POLITICAL INTERST IS THE FULL AND FAITHFUL IMPLEMENTATION OF THE JOINT DECLARATION. MAJOR STAKE IN THIS''

PAGE TWO, SEVENTH (NOW EIGHTH) TIRET. ADD AT FRONT: ''IN ACCORDANCE WITH RELEVANT JOINT DECLARATION PROVISION, BRITISH

PAGE THREE, FIRST TIRET. SUGGEST ''SUBSTANTIAL

SECTION VI

D

FOR ''LARGE'

PAGE ONE, FIRST TIRET. AMEND SECOND SENTENCE TO READ: AVERAGE REAL GROWTH RATE OF 13 PER CENT AND THE BEST...

PAGE ONE, SECOND TIRET. AMEND TO READ: HIGHER THAN THAT OF SINGAPORE (USD8,460).

78

G

·

·

HAD

JAPAN AND SOMEWHAT

PAGE ONE, FOURTH TIRET. ADD AT END OF FIRST SENTENCE 12 PER CENT IN 1988.' i

1987 AND

INCREASED BY 19 PER CENT IN

PAGE ONE FIFTH TIRET. AMEND TO READ: REAL TERMS IN 1986, 20 PERCENT IN 1987 AND 19 PERCENT IN 1988.'

PAGE ONE TENTH TIRET. INSERT ''LONG TERM ''INFRASTRUCTURAL''.

1

T BETWEEN 'MASSIVE AND

}

PAGE TWO, SECOND TIRET. ADD AFTER 'YUEN LONG'': ''PHASE I COMMENCED OPERATION IN SEPTEMBER LAST YEAR.''

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CONFIDENTIAL

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