SECRET
SECRET
FM HONG KONG
TO DESKBY 21150OZ FCO
TELNO 886
OF 211215Z MARCH 91
INFO DESKBY 220001Z PEKING
INFO IMMEDIATE UKREP JLG HONG KONG
010134 MDHIAN 9015
PERSONAL FOR BURNS, AUSS FROM GOVERNOR
PEKING PERSONAL FOR AMBASSADOR
UKREP JLG HONG KONG PERSONAL FOR GALSWORTHY
MIPT : PADS THE WAY FORWARD : MEETING WITH LU PING ON 23 MARCH
1. AS POINTED OUT IN MIPT, MY OBJECTIVE AT THE MEETING ON 23 MARCH WILL BE TO REACH A PACKAGE DEAL, AS PART OF WHICH I PUT FORWARD HK DOLLARS 14-15 BILLION AS THE SUM WHICH WE WOULD BE PREPARED TO EARMARK AS A PART OF OUR FISCAL RESERVES. I CANNOT BE SURE THAT THIS DEAL IS ACHIEVABLE WITH THIS SUM OF MONEY. THERE IS ALSO A STRONG POSSIBILITY THAT LU WILL COME WITH A BRIEF SIMPLY TO PROBE OUR BOTTOM LINE SO THAT AGREEMENT CAN BE REACHED DURING THE SECRETARY OF STATE'S VISIT.
2. IF WE RUN INTO DIFFICULTIES WITH THE OTHER CHINESE PROPOSALS, I DO NOT INTEND TO OFFER ANYTHING ABOVE HK DOLLARS 15 BILLION. BUT IF WE CAN MORE OR LESS REACH AGREEMENT ON THE OTHER CHINESE POINTS, AND THIS SUM REMAINS A PROBLEM, I WOULD BE PREPARED TO HINT THAT WE MIGHT, WITH GREAT DIFFICULTY, BE ABLE TO CONSIDER INCREASING IT A LITTLE IF ALL OTHER POINTS WERE RESOLVED TO OUR SATISFACTION.
3. EXCO ARE CONTENT THAT, IN ORDER TO SECURE FINAL AGREEMENT, WE COULD GO TO HK DOLLARS 20 BILLION. THIS WOULD BE AN ABSOLUTE LIMIT WHICH COULD WELL FORCE US TO OPERATE UNDER CONSIDERABLE CONSTRAINTS IN THE NEXT SIX YEARS. HOWEVER, MY INTENTION IS THAT, UNLESS THERE IS CLEAR AND COMPLETE AGREEMENT IN FANLING, THIS OR ANY OTHER FIGURE ABOVE HK DOLLARS 15 BILLION SHOULD BE HELD IN RESERVE FOR THE SECRETARY OF STATE'S VISIT.
WILSON
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