CONFIDENTIAL
115325
MDHIAN 8441
PROBLEM OF ''FACE' WILL BE MORE DIFFICULT TO OVERCOME.
THE CHINESE FEEL STRONGLY THAT WE ARE TRYING TO PRESENT THEM WITH A FAIT ACCOMPLI WITH IMPLICATIONS AFTER 1997, AND THEN BOUNCE
THEM INTO LENDING SUPPORT FOR IT. THIS BRINGS US INTO THE COMPLICATED AND SENSITIVE ISSUE OF SOVEREIGNTY AND THUS PERCEIVED LOSS OF ''FACE'' FOR THE CP G. WITH HINDSIGHT, IT IS PERHAPS UNFORTUNATE THAT WE WERE UNABLE TO BRIEF THE CHINESE MORE FULLY ON THE PROJECT BEFORE THE GOVERNOR'S ANNOUNCEMENT TO LEGCO IN OCTOBER 1989. THE ATMOSPHERE IN SINO-BRITISH AND SINO-HONG KONG RELATIONS, SO SOON AFTER THE EVENTS OF JUNE 1989, WAS OF COURSE VERY DIFFERENT THEN, BUT IT GOT US OFF TO A BAD START. OUR SUGGESTION THAT THE CHINESE SIDE SHOULD GIVE THEIR SUPPORT FOR THE PROJECT ADDED SALT TO THEIR WOUND. THE CHINESE SENSE OF IRRITATION AND LOST FACE WAS COMPOUNDED BY THE ANNOUNCEMENT OF THE LANTAU FIXED CROSSING JUST BEFORE THE FIRST ROUND OF EXPERT TALKS. MUCH OF THE TREATMENT THE HKG EXPERTS RECEIVED AT THE HANDS OF THE CHINESE THIS TIME CAN BE DIRECTLY LINKED TO THEIR
ANGER AT THAT ANNOUNCEMENT.
8. THE CHINESE HAVE CLEARLY NOW DECIDED THAT WE ARE GOING TO BE
MADE TO PAY FOR OUR PERCEIVED MISBEHAVIOUR IN THE PAST.
THE ULTIMATUM DELIVERED DURING THE TALKS AND THE WAY IN WHICH THE PRESS WERE FIRST PREPARED FOR A BREAKDOWN AND THEN BRIEFED ON THE CONTENTS OF THE TALKS WAS CLEARLY PRE-PLANNED. THERE IS EVIDENCE FROM LUO JIAHUAN'S PRESS CONFERENCE THAT THE CHINESE
ARE NOW USING THIS ISSUE TO RANGE MORE WIDELY TO DELIVER A GENERAL WARNING ON THE RESPECTIVE ROLES OF THE C P G AND HKG IN THE TRANSITIONAL PERIOD AND ON THE NEED FOR CONSULTATION ON ALL
ISSUES THAT HAVE IMPLICATIONS BEYOND 1997. EVEN IF THE CHINESE DECIDE TO SUPPORT THE AIRPORT SCHEME, AND IT REMAINS POSSIBLE THAT THE DECISION IN PRINCIPLE HAS ALREADY BEEN TAKEN, THEY ARE GOING TO MAKE US WORK FOR IT. NOW THAT THEY HAVE MADE PUBLIC THEIR DEMAND THAT WE SUSPEND WORK ON THE AIRPORT WHILE CONSULTATIONS CONTINUE, IT WILL BE DIFFICULT FOR THEM TO BACK DOWN. EQUALLY IT WILL BE DIFFICULT FOR US TO MAKE CONCESSIONS WITHOUT BEING PERCEIVED AS BOWING TO PEKING'S WISHES.
9.
WE WILL NED TO CONSIDER CAREFULLY HOW TO TAKE THINGS FORWARD. IN SOME WAYS THE POSITION IS ANALOGOUS TO THAT ON THE WHITE PAPER
ON REPRESENTATIVE GOVERNMENT WHEN THE GOVERNOR WAS ABLE TO GIVE
PRIVATE ASSURANCES TO THE CHINESE WHICH UNBLOCKED THE IMPASSE.
THE PROBLEM IS WHETHER THERE IS ANYTHING THAT THE GOVERNOR CAN GIVE THE CHINESE DURING HIS VISIT WHICH WILL ALLOW THEM TO MAKE A MOVE, POSSIBLY DURING A VISIT BY YOURSELF. WE WILL NEED TO
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CONFIDENTIAL