CONFIDENTIAL
НКО 182 12
188
106261
MDHIAN 5621
CONFIDENTIAL
FM HONG KONG
TO DESKBY 27130OZ FCO
TELNO 611
OF 271015Z FEBRUARY 91
INFO DESKBY 28010OZ PEKING
M
TOP COPY DIST ?
Pa
INFO IMMEDIATE UKREP JLG HONG KONG
183
MY TELNO 598 : PADS: THEY WAY AHEAD
1. MY TWO IFTS CONTAIN OUR PROPOSED AGENDA FOR MY DISCUSSION OF THE AIRPORT WITH LU PING ON 4 MARCH AND A DEFENSIVE BRIEF COVERING POINTS THAT THE CHINESE MAY RAISE ARISING FROM THE THIRD ROUND OF EXPERT TALKS. WE ARE STILL REFINING THESE PAPERS, BUT IT WOULD BE USEFUL TO HAVE ANY PRELIMINARY COMMENTS THAT YOU MAY HAVE ON THEM DESKBY 280030Z (28050OZ FOR PEKING).
2. THE REASON BEHIND THE SELECTION OF THE FIGURE OF DOLLARS 75 BILLION (PARAGRAPH 4.1 OF MIFT) IS THAT, ACCORDING TO OUR FORECASTS, THE LOWEST POINT OF THE TOTAL FISCAL RESERVES (INCLUDING THE LAND FUND) BETWEEN NOW AND 1997 WILL BE DOLLARS 91 BILLION, UNDER OPTION 2 IN 1995/96. THE FIGURE OF DOLLARS 75 BILLION ALLOWS US A CONTINGENCY MARGIN. IT IS STILL 10 PER CENT MORE IN REAL TERMS THAN THE LEVEL OF RESERVES AT THE END OF 1984/85.
3. WE WILL TELEGRAPH TOMORROW (28 FEBRUARY) A DRAFT MESSAGE FROM MACLEOD TO LUO.
WILSON
YYYY
ΜΑΙΝ
77
.PADS
LIMITED
DISTRIBUTION
78
PUSD
RAD
PS/LORD CAITHNESS PS/MR LENNOX-BOYD
MR BAYNE
HKD
COMED
ECONOMIC ADVISERS
PAGE
1
CONFIDENTIAL