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for the post-1997 Government.

42

Redacted Under FOI Exemption | Sec 27(1)(a)(c)(d)

6

b

My visit to Peking next month represents the point at which we shall have maximum leverage over the Chinese on this issue. They have already made clear that they want to

do a deal with HMG rather than the Hong Kong Government. Once my visit is over, the chances of doing a sensible deal

will be significantly diminished. Moreover we cannot afford any further delay if the airport is to be substantially

complete by 1 July 1997. Invitations to tender for the

Lantau Bridge, the next major part of the airport project,

will need to go out very shortly if that time-table is to be

met.

Experience shows that in order to get what we want from the Chinese, we must make every effort to tie up the most important details of an agreement before my visit, if at all possible (or failing that, through parallel talks which could take place during it). I have therefore authorised

the Governor to send a message to Lu Ping, the Director of

the State Council's Hong Kong and Macao Affairs Office, with

whom he had detailed discussions in Hong Kong last week,

proposing a further private meeting in Hong Kong next week.

This message refers to the prospect of my own visit to

Peking early in April. It says that, in order to contribute

to a successful outcome of that visit, the Governor would be

prepared to discuss a specific figure which the Hong Kong

Government would aim to leave in the fiscal reserves in

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