M
27/10
Mr Grxm
Mr Stone /27/3
твой млазний
TU3 26/3 Thank you. The Savetary
State saw this shad it in mind at
naming's meeting
Private Secretary
26
उ
&
this
(24)
SECRET
Secrety & Hote
From:
Date:
Cc:
RA Burns
22 March 1991
PS/Lord Caithness PS/PUS
Sir J Coles
قلم الله
Mr Cornish, News Dept
(Personal)
Mr Paul, HKD
Mr Davies, FED Sir Arthur Watts,
Legal Adviser
нив 182. 1к
A
B
C
D
UA
HONG KONG : PADS : THE WAY FORWARD
1. As far as Hong Kong is concerned, there are two central issues to the Peking visit:-
2.
(a)
(b)
achieving a more productive dialogue, especially through re-energised JLG work: we are preparing a full speaking note on this;
a satisfactory agreement on the new airport.
Lu Ping accepted with considerable alacrity the Governor's invitation to visit Hong Kong again for private talks about the airport at Fanling Lodge - though we know from other sources that the Chinese consider that our negotiating position is weak.
3.
The Governor has sent me his negotiating brief. It is ambitious,
It also reflects the very limited flexibility open to the Governor. It is by no means certain that a deal can be struck this weekend. There is a strong likelihood, therefore, that the negotiations will drag on into the Peking visit. And we may be faced with some tough choices. I will submit next week on the logistic implications of that and on whether - and, if so, in what terms - a message from the Secretary of State might be advisable.
4. I have probed the Governor on certain aspects of his negotiating brief. I attach his reply. On the whole, this is satisfactory. I have discussed the issues with the Treasury. The Chancellor is likely to write to us warning of the need to avoid like the plague any suggestion that we should be responsible for any shortfall in the minimum level of fiscal reserves. These reserves (now around £70 billion) should not come under strain until nearer 1997. The Governor
Redacted Under FOI Exemption Sec 27(1)(a)(c)(d)
SECRET
/proposes
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