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INFORMAL MEETING OF EC FOREIGN MINISTERS: LUXEMBOURG:

(27-28) APRIL 1991

HKE 020/12

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Mr Stone b

a pa

'tel France! Ru 2014.

SECRETARY OF STATE'S BILATERAL WITH M DUMAS: HONG KONG

Points to make

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Hong Kong recovering from Tiananmen shock. Our passport

scheme had steadying effect. Thanks for French scheme.

In run-up to 1997 Britain/China/Hong Kong need closer

cooperation. Hoped to achieve a change of gear through visit to Peking.

No concrete results yet. Discussions on airport

difficult. Chinese need reassurance on financial

implications of airport, and effective veto on all major

decisions straddling 1997. Can meet their concerns on

finance, but giving Chinese veto power would undermine our

authority, make it impossible to run territory effectively.

Hope will remind privately Chinese of

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European/international support for Joint Declaration and

desire to see "one country two systems" succeed. Also

underline importance of China's role in maintaining investor

confidence in Hong Kong.

- But need care not to fuel Chinese suspicions of a campaign

to internationalise the issue or interfere with China's

sovereignty post-1997.

MARAIK/1

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