CONFIDENTIAL

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HKB 18212

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CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 589

OF 26095OZ FEBRUARY 91

INFO PRIORITY PEKING, UKREP JLG HONG KONG

176

177)

179

102341

MDHIAN 5399

MY TELNOS 585

586: PADS:

CHINESE SOURCES

1. CHINESE SOURCES WERE WIDELY QUOTED YESTERDAY ON THE LOCAL

RADIO STATIONS.

2.

RTHK QUOTED SOURCES AS SAYING THAT PEKING WANTED TO SOLVE THE NEW AIRPORT PROBLEM AS SOON AS POSSIBLE, ALTHOUGH ANOTHER ROUND OF TALKS WOULD BE NECESSARY. THE DATES FOR THIS WOULD BE FIXED AFTER LU PING'S VISIT NEXT WEEK. DIFFERENCES PERSISTED ON SEVERAL ASPECTS, INCLUDING THE PROJECT'S FINANCIAL ARRANGEMENTS, BUT THE VIEWS OF THE TWO SIDES WERE RELATIVELY CLOSE ON THE ESTABLISHMENT OF A CONSULTATIVE COMMITTEE. PEKING HAD NEITHER APPROVED NOR REJECTED THE FOUR OPTIONS PUT FORWARD BY THE HONG KONG SIDE. IF THE OVERALL FINANCIAL ARRANGEMENTS COULD BE SETTLED, THE HONG KONG SIDE COULD CHOOSE ITS OWN OPTION, IN CONSULTATION WITH THE PROPOSED CONSULTATIVE COMMITTEE.

3.

COMMERCIAL RADIO REPORTED THAT THE CHINESE SIDE HAD RAISED THE QUESTION OF INCLUDING CHINESE MEMBERS OF THE FUTURE AIRPORT AUTHORITY. THE HONG KONG TEAM HAD NOT STRONGLY OBJECTED TO THIS AND HAD AGREED TO DISCUSS THE MATTER FURTHER. THE CHINESE HOPED THAT THE FOURTH ROUND OF EXPERT TALKS WOULD BE HELD IN HONG KONG AS SOON AS POSSIBLE. LU PING'S VISIT WOULD BE VERY IMPORTANT FOR RESOLVING THE AIRPORT ISSUE.

4. A MEMBER OF THE CHINESE EXPERT TEAM, ZUO MU, SAID ON HIS RETURN TO HONG KONG THAT THE PROPOSED CONSULTATIVE COMMITTEE WOULD BE AN ADVISORY BODY WITH NO DECISION-MAKING POWER. NO DECISION HAD YET BEEN REACHED ON EITHER THE SIZE OR THE COMPOSITION OF THE COMMITTEE.

5.

WEN WEI PO CARRIED AN EDITORIAL TODAY (26 FEBRUARY) ENTITLED ''EXPERT TALKS MAKE PROGRESS''. IT SAID THAT THE MAJOR PROBLEMS RELATED TO THE CONSTRUCTION OF THE NEW AIRPORT WERE THE FINANCIAL ARRANGEMENTS, THE AIRPORT AUTHORITY AND THE CONSULTATIVE COMMITTEE. THESE HAD NOT BEEN COMPLETELY SOLVED. ON FINANCIAL

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CONFIDENTIAL

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