RESTRICTED

RESTRICTED

FM HONG KONG

NKO

IN VEGISTRY

18214

TOP COPY Q DIST?

OF JUL1991

TO IMMEDIATE FCO

TELNO 2100

OF 020853Z JULY 91

Taken

INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

026634

MDHIAN 3604

-

AIRPORT TALK: PRESS REPORTS 2 JULY, 1991

SUMMARY

1. CHINESE SOURCES VARIOUSLY QUOTED AS SAYING LI PENG HAS REPLIED TO THE PM'S LETTER AND THAT AIRPORT TALKS WOULD RESUME.

COLUMNS IN WEN WEI PO.

DETAIL

2. TODAY'S (2 JULY) EXPRESS QUOTES AUTHORITATIVE PEKING SOURCES AS SAYING THAT BRITAIN AND CHINA WERE ELEVATING THE AIRPORT TALKS TO MINISTERIAL LEVEL SO AS TO RESOLVE THE PROBLEM. JUDGING FROM RECENT DEVELOPMENTS THERE WAS A GOOD CHANCE THAT AGREEMENT WOULD SOON BE REACHED AND WORK COULD PROCEED. LI PENG HAD WRITTEN BACK TO THE PRIME MINISTER SAYING HE WAS PREPARED FOR SENIOR OFFICIALS FROM THE TWO SIDES TO SOLVE THE PROBLEM. SIR PERCY CRADOCK'S VISIT TO CHINA WAS IN RESPONSE TO PRESSURE FROM BRITISH CONSORTIA FOR THE AIRPORT TO GO AHEAD.

3. MING PAO ALSO QUOTES CHINESE SOURCES, THIS TIME AS SAYING THAT IF ALL WENT WELL AN ANNOUNCEMENT WOULD SOON BE MADE ON THE RESUMPTION OF AIRPORT TALKS. THE CRUX OF THE PROBLEM WAS MAJOR MATTERS STRADDLING 1997. FINANCIAL MATTERS COULD BE SMOOTHLY

RESOLVED.

4 A COLUMN IN WEN WEI PO CONTINUES THE COMPLIMENTARY LINE REPORTED IN OUR TELNO 2038. MY USE OF THE WORD QUOTE SLIPPAGE UNQUOTE TO DESCRIBE THE PRESENT SITUATION WAS MODERATE AND INDICATED A SENSE OF MUTUAL UNDERSTANDING AND ACCOMMODATION. ANOTHER COLUMN IN THE SAME PAPER CALLS FOR THE RESUMPTION OF AIRPORT TALKS AS SOON AS POSSIBLE IN A BID TO STABILISE HK PEOPLE'S CONFIDENCE.

WILSON

YYYY

1

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