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confidence in Hong Kong is in relation to the Port and Airport
The Chinese have on several occasions Development Scheme (PADS). expressed concern that PADS might become a financial burden on the future SAR Government. The Prime Minister may wish to explain that expanded port and airport facilities are essential if Hong Kong is to retain its position as a major international trading centre: the
She could also reassure the Chinese territory cannot stand still. Ambassador that detailed feasibility studies have been undertaken, that up to 60% of the project is expected to be financed by the private sector and that the Hong Kong Government has already begun to set aside funds for the project so that it can be funded without
The Prime imposing any strain on the Government's resources. Minister might also say that Chinese participation will be welcome, and that Chinese support would favourably affect the project's financial viability. She could add that we are considering the possibility of inviting a number of key Chinese officials to visit Hong Kong for a detailed briefing.
The Prime Minister may also wish to underline the importance of Chinese help to prevent Vietnamese boat people transitting China en route to Hong Kong. In addition to the problem of coast-hopping, an increasingly large number of Vietnamese now travel through China over land, often by local bus, and only make the final stage of the journey by boat. When the Governor of Hong Kong was in Peking in January, Premier Li Peng assured him that the Chinese Government was willing to help with this problem and we are now providing the Chinese on a regular basis with full details of the routes being used to reach Hong Kong. The Prime Minister may wish to stress that we look to the Chinese to take effective measures to prevent a further influx of Vietnamese this year; and that if the influx continues, we may have to seek Chinese cooperation in implementing
emergency measures.
Finally, the Prime Minister should draw attention to the forthcoming visit to China by Lord Young, planned for 25-28 March, as further evidence of our desire to restore relations with China. We intend to brief Lord Young to put across the same general message about the need for positive Chinese gestures in Hong Kong. Young will be well placed to explain to the Chinese the ALIAAJ
Lord
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