CONFIDENTIAL

154121

MDAN 2139

INNOCENT.

-

4 JI SAID THAT GUANGDONG WOULD HAVE AGREED TO A MEETING TOWARDS THE END OF LAST WEEK, AND WOULD IN HIS VIEW HAVE MADE SURPRISINGLY COOPERATIVE PROPOSALS FOR RESOLVING THE ISSUE, HAD IT NOT BEEN FOR THE DISCUSSION OF THE INCIDENT IN LEGCO WHICH HAD CONSIDERABLY

ANNOYED THE GUANGDONG AUTHORITIES. HE WAS STILL NOT IN A POSITION TO INFORM US OF A SPECIFIC DATE FOR A MEETING BUT HE VOLUNTEERED

THAT HE THOUGHT RAISING THE INCIDENT WITH THE MFA IN PEKING COULD

INFACT HELP TO RESOLVE THE MATTER. HIS ONLY COMMENT ON THE FACTS OF THE CASE WAS THAT IT WOULD STILL BE VERY HARD FOR THE CHINESE SIDE

TO ACCEPT THAT THERE HAD BEEN ANY INVOLVEMENT OF THEIR OFFICIALS.

5. WE HAVE RECEIVED ONE OR TWO INDICATIONS THAT NCNA, AND INDEED THE GUANGDONG FOREIGN AFFAIRS BUREAU, ARE NOT FULLY CONVINCED OF THE GUANGDONG PUBLIC SECURITY BUREAU'S STORY. JI'S HINT THAT PRESSURE IN PEKING MAY FORCE GUANGDONG TO RESOLVE THE MATTER MAY CORROBORATE THIS. WE CERTAINLY HOPE THAT THE ANTI-SMUGGLING MEASURES ANNOUNCED WILL NOW SWEETEN THE ATMOSPHERE. EHRMAN MADE CLEAR THAT WE WOULD BE HAPPY TO GO OVER THESE MEASURES, AS WELL AS THE FACTS OF THE INCIDENT, AT THE BORDER LIAISON MEETING.

WILSON

YYYY

ΜΑΙΝ

LIMITED

HKD

FED

NEWS D

NNNN

30

DISTRIBUTION

30

MR MCLAREN

MR BURNS

MISS SPENCER

PAGE 2 CONFIDENTIAL

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