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Classification
OUT TELEGRAM (CONT)
CONFIDENTIAL
Caveat
Precedence
IMMEDIATE
nor hinder its ability to administer the territory effectively.
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
efficently. 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 negotiatiors will be in Peking for talks
scheduled to take place on 18-22 May.
I hope that in private contacts with your interlocutors in
China, you 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.
You may also wish to note that Hong Kong will be seriously
affected if the United States does not to renew China's Most
Favoured Nation trade status. A decision on this is expected
shortly. We have therefore lobbied the US Administration in
support of renewal of that status because of Hong Kong. We have
told the Chinese Government that we are doing so: but we have also explained that the prospects of this lobbying succeeding would be enhanced if our public differences over the airport could be resolved quickly. You may wish to make this point if
an opportunity arises.
Ends
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