CONFIDENTIAL
001035
MDHIAN 0173
SINO-BRITISH RELATIONS WERE ALSO IMPORTANT IN DEALING WITH THE HONG KONG QUESTION. THE TWO GOVERNMENTS HAD OBLIGATIONS TO ENSURE THE SMOOTH IMPLEMENTATION OF THE JOINT DECLARATION, THE PROSPERITY AND STABILITY OF HONG KONG, AND A SMOOTH TRANSITION IN
1997.
4.
MR. MAUDE SAID THAT HMG ATTACHED IMPORTANCE TO HIS VISIT. THE MAIN PURPOSE OF DISCUSSIONS SHOULD BE TO REBUILD RELATIONS TO THE HIGH LEVEL OF THE 1980'S. THERE HAD BEEN SOME DIFFICULTIES SINCE LAST YEAR. HE AGREED THAT THE BRITISH AND
CHINESE GOVERNMENTS HAD A SHARED RESPONSIBILITY AS PERMANENT MEMBERS OF THE UN SECURITY COUNCIL, AND AS SIGNATORIES OF THE JOINT DECLARATION.
THE BRITISH GOVERNMENT HAD SOUGHT TO CONTINUE CLOSE BILATERAL CONTACTS OVER THE PAST YEAR. YOUR PREDECESSOR
5.
HAD MET FOREIGN MINISTER QIAN AT THE UN GENERAL ASSEMBLY LAST YEAR. MRS THATCHER'S SPECIAL ENVOY SIR PERCY CRADOCK HAD VISITED PEKING IN DECEMBER LAST YEAR. THE GOVERNOR OF HONG KONG HAD DONE SO IN JANUARY. LORD YOUNG HAD VISITED IN MARCH, AND HAD APPRECIATED THE OPPORTUNITY TO SEE LI PENG. IN ADDITION, THE CHINESE AMBASSADOR IN LONDON HAD HAD A NUMBER OF DISCUSSIONS WITH MRS THATCHER AND SENIOR GOVERNMENT MINISTERS.
6. MR MAUDE SAID THAT THE UK HAD LED DISCUSSIONS ON CHINA WITH EC AND G7 PARTNERS. WE WERE URGING THEM TO RELAX THE MEASURES TAKEN LAST YEAR. RECENT POSITIVE MOVES FROM THE CHINESE GOVERNMENT MADE IT EASIER TO PRESS THE CASE. WESTERN PARTNERS WOULD BE EVEN MORE RESPONSIVE IF
THE CHINESE GOVERNMENT WERE TO MAKE FURTHER POSITIVE MOVES.
7.
MR. MAUDE SAID THAT HE HAD OUTLINED STEPS FOR ENHANCING BILATERAL COOPERATION TO VICE-FOREIGN MINISTER TIAN IN THEIR MEETING EARLIER. HE WAS PLEASED TO ANNOUNCE THAT THE BRITISH GOVERNMENT HAD AGREED TO PROVIDE CONCESSIONARY FINANCE FOR THE CONTRACT RECENTLY SIGNED BY DAVY FOR THE DANYANG ALUMINIUM PLANT.
8. ON HONG KONG, MR MAUDE SAID THAT SERIOUS AND SINCERE DISCUSSIONS HAD CONTINUED. AGREEMENT HAD BEEN REACHED ON THE QUESTION OF POLITICAL DEVELOPMENT IN HONG KONG AND THIS HAD FACILITATED THE FINALISATION OF THE BASIC LAW. THERE HAD NOT BEEN COMPLETE SATISFACTION ON EITHER SIDE, BUT DISCUSSIONS HAD BEEN SINCERE AND HAD LED TO AGREEMENT. THE BRITISH GOVERNMENT WAS ALSO CONCERNED ABOUT THE PROBLEM OF VIETNAMESE BOAT PEOPLE AND HOPED
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