29:
assification CONFIDENTIAL
OUT TELEGRAM (CONT)
Daveat
Precedence IMMEDIATE
These considerations have been reflected in our discussions with the Chinese over the airport. It is important that the Hong Kong Government has the ability to manage the project efficiently. The Chinese Government have concerns about the effect of the project on the financial position of Hong Kong after 1997: we have made proposals which should meet these concerns. Our negotiators are currently in Peking for talks on
those matters.
I hope that in private contacts with the Chinese authorities your Government will take the opportunity to emphasise to them that the international community attach great importance to the success of the Joint Declaration and to the maintenance of Hong Kong's long-term prosperity and stability: and that investor confidence in Hong Kong will be enhanced if Britain and China can cooperate effectively to manage the transition to Chinese
sovereignty.
Hong Kong will be seriously affected if the United States does
ot renew China's Most Favoured Nation status. We have therefore
lobbied the US Administration in support of renewal of that
status because of Hong Kong.
I hope that the Australian Government will lend its support to
these efforts, in the interests of Hong Kong's continuing
prosperity.
MESSAGE ENDS
2. A signed original will not be sent.
HURD
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For patrout on orcer see Page
MSC 1 31 Do FC03276 V100 CON 58294
Catchword:
STOCK No. C037C YF67