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7
в
the frasial
Reserved now
stand at
around HK$
(70 km).
9
1997, consulting with the Chinese if there was a risk that the reserves might fall below that figure.
This assurance has been very carefully formulated to ensure that it is only a "best endeavours offer". It will not amount to a guarantee by the Hong Kong Government, still less by HMG. The Governor is quite clear as indeed I am
wing
-
that there can be no question of the Hong Kong Government or British Governments offering to guarantee the level of Hong
day
Kong's fiscal reserves in 1997. Nonetheters this does go beyond the commitment, ret out in the Joint Declaration.
It is not clear whether the Hong Kong Government will
Therical
(
be able to offer enough to satisfy the Chinese while remaining within the bounds of financial prudence. The Governor is contemplating an initial offer in the range of news on HK$ 10-14 billion His message however will make clear (know w that, in return for this assurance, we expect a clear statement of Chinese support for the airport project, an assurance that the other/financial restrictions which the Chinese have suggested will be put on one side and an acceptance that Hong Kong will remain in full control of the
project. I have reflected carefully on whether we should be seeking more than this in return for such a significant new commitment by the Hong Kong Government. I have concluded that the deal will be strengthened by a better political understanding with the Chinese leadership; and this is something which I intend to pursue during my own visit.
I am copying this minute to the Chancellor of the
Ayond the Chancellor, I
Exchequer and SuR. Butter. As wwwww Gryphasive I каний
DOUGLAS HURD
LLJAAS/3
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