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CONFIDENTIAL
2
(c)
(d)
Dr Edwards asked complete veto.
whether China was seeking a The Governor explained that
they wished to have 'consensus" about major issues straddling 1997.
a veto.
Their
This effectively concerns about
meant
the airport project were both economic, which we could address, and political which were much more difficult.
We saw an autonomous Hong
Kong moving smoothly to an autonomous SAR. Peking saw the transition differently : it expected authority over Hong Kong to pass to Peking which would then devolve that authority to Hong Kong. These differences in approach needed to be worked through carefully.
more
Mr Taylor said that Martin Lee had painted a
to pessimistic picture
members of the Committee.
He had expressed concerns about
to commitment HMG's
Hong Kong concerned that there would be an unhappy
for compromise
over arrangements
Hong
made
and
was
Kong's future. The Governor said that the key was to get the balance right. Hong Kong
people wished HKG to take a firm stand with China but were critical of any public argument which then ensued. We needed to look after Hong Kong's interests while trying to avoid major arguments with China.
(e) Mr Sinclair said that there was a great deal
of
goodwill towards Hong Kong in Australia. He asked whether illegal immigration was still
we saw our relations
a
how
problem,
with Taiwan and about aspirations for a fully elected assembly. The Governor confirmed that illegal immigration was
a still problem. 27,000
year.
11
to 30,000 were returned to China each This made it all the more difficult to explain to local people in Hong Kong why we could not return VMs to Vietnam. He said that Taiwan was important to Hong Kong. Much Taiwanese investment in China came through Hong Kong.
Moreover the Chinese leadership probably saw the "one country two systems approach in Hong Kong as a test for what might be applied to Taiwan. On political evolution the Governor said that we should probably have done more earlier but there had been little popular demand for democracy. Many were still apathetic and in recent municipal elections only 23% of those who had registered actually voted. The turnout before the first direct elections to Leg Co in the autumn would
CONFIDENTIAL