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CONFIDENTIAL
001035
MDHIAN 0173
FOR CLOSE COOPERATION WITH CHINA. BRITAIN HAD ARGUED STRONGLY WITH THE US ADMINISTRATION IN FAVOUR OF RENEWAL OF MEN STATUS FOR CHINA. MRS THATCHER HAD SENT A PERSONAL MESSAGE
TO PRESIDENT BUSH IN THIS CONNECTION.
9.
MR MAUDE SAID THAT THE HONG KONG GOVERNMENT HAD APPROACHED THIS PROJECT FOR THE DEVELOPMENT OF A NEW AIRPORT WITH GREAT CARE AND HAD UNDERTAKEN MUCH RESEARCH. ECONOMIC ANALYSIS SHOWED THAT IN THE MEDIUM AND LONG TERM, HONG KONG'S FUTURE POST 1997 WOULD BE SEVERELY DAMAGED IF THE PROJECT WERE NOT TO PROCEED. HKG COULD HAVE IGNORED THE PROBLEM, BUT FELT THAT IT HAD A DUTY TO THE LONG-TERM PROSPERITY OF HONG KONG AND SHOULD PRESS AHEAD WITH THE PROJECT. STEPS HAD BEEN TAKEN TO ENSURE THAT NO BURDEN OF DEBT WOULD BE LEFT TO THE S AR GOVERNMENT AFTER 1997. MOST OF THE FUNDING WOULD COME FROM THE PRIVATE SECTOR, WHICH WAS LOOKING FOR AN INDICATION THAT THE CHINESE GOVERNMENT WAS PERSUADED THAT THE PROJECT WAS ESSENTIAL FOR THE CONTINUED DEVELOPMENT OF HONG KONG, AND THEREFORE LOOKED ON IT WITH FAVOUR.
10. CONTINUING, MR MAUDE HOPED THAT THE WORK OF THE JLG COULD BE INTENSIFIED, SINCE MANY PRACTICAL PROBLEMS STILL REMAIN
TO BE RESOLVED.
11.
AS REGARDS NATIONALITY MR MAUDE SAID THAT THE BILL WAS DESIGNED TO STEM THE FLOW OF TALENTED PEOPLE AWAY FROM HONG KONG BY GIVING THEM THE ASSURANCE OF A RIGHT OF ABODE IN THE UK. THE SOLE AIM WAS TO ENSURE HONG KONG'S FUTURE PROSPERITY AND STABILITY BY ENCOURAGING SUCH PEOPLE TO REMAIN IN HONG KONG.
12. ON THE PROPOSED BILL OF RIGHTS. MR MAUDE SAID THAT THE BRITISH SIDE WOULD BE PREPARED TO TAKE ACCOUNT OF THE VIEWS OF THE CHINESE GOVERNMENT. WE SHOULD RESOLVE DIFFERENCES BY DISCUSSIONS IN PRIVATE, AND SHOULD NOT AIR THEM IN PUBLIC. WE WERE READY TO DISCUSS THE BILL IN A SPIRIT OF COOPERATION.
13. LI EXPRESSED APPRECIATION FOR WHAT MR MAUDE HAD SAID ABOUT THE BRITISH GOVERNMENT'S WISH TO RESTORE RELATIONS TO THE FRIENDLY LEVEL PREVAILING BEFORE LAST YEAR. CHINA WAS READY TO MAKE EFFORTS TO THIS END. CHINA WAS STABLE ECONOMICALLY AND POLITICALLY. ON THE ECONOMIC FRONT IT WAS OVER THE MOST DIFFICULT PERIOD WHICH HAD COINCIDED WITH SANCTIONS IMPOSED ON CHINA. LI CITED A NUMBER OF INDICATIONS THAT THE ECONOMIC SITUATION HAD IMPROVED: INFLATION HAD DROPPED TO 4 PER CENT: THERE HAD BEEN A BUMPER HARVEST IN 1990: CHINA'S INTERNATIONAL
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