XM (90) 26

241

there

was no question of deficit financing as the

Chinese had suggested.

asked whether in

the final analysis, there would be a significant

element of HKG guarantees in a project of this

magnitude. The Financial Secretary said that this

specific issue would be addressed by Consultants

and every effort would be made to avoid giving

such guarantees.

(b) RELEASE OF DR FANG LIZHI (

In reply to

方勵之)

the Political Adviser

said that this had removed a major obstacle to

improvements in Sino-American relations and would

obviously

help

secure

renewal

of

Most-Favoured-Nation

status.

In addition, there

were

Kong

indications that the release of four Hong

residents imprisoned in China following the

last year, was imminent. The

events in June of

Governor added that

were endeavouring

to

it appeared that the Chinese

present a more favourable

image to the rest of the world and this was good

for Hong Kong.

(c) THE GOVERNOR'S VISIT TO UK

The Governor

: 27 JUNE

-

7 JULY

announced that he would leave

Hong Kong tonight

for the UK.

Arrangements had

been made for him to call on the Prime Minister,

whom he intended to thank for her role in seeing

Redacted under FOI exemptions 27(1), 40(2) and 41.

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