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ENGINEERING OR WITH ANY TENDERS. BUT SINCE THE NEW AIRPORT WOULD USE UP THE RESERVES AND LEAVE RESPONSIBILITIES FOR THE SARG, THE CHINESE HAD NATURALLY WISHED TO EXAMINE ITS FEASIBILITY. THE CHINESE PROPOSAL WAS THAT A CERTAIN LEVEL OF RESERVES SHOULD BE LEFT, THAT OBLIGATIONS SHOULD BE LIMITED AND THAT PRIVATE SECTOR PARTICIPATION SHOULD BE INCREASED. THE CONCRETE DETAILS OF THE AIRPORT WERE ALL FOR HKG. IN WHAT WAY WAS THIS INTERFERENCE?

6.

THE PRESENT SITUATION WAS THAT CHINA AND BRITAIN HOPED TO REACH AGREEMENT THROUGH TALKS. BRITISH AND HONG KONG BUSINESSMEN HOPED TO SHARE THE BENEFITS BROUGHT ABOUT BY THE PROJECT, AND HONG KONG PEOPLE HOPED THAT THE TERRITORY'S PROSPERITY AND STABILITY WOULD BE ENHANCED THROUGH THE CO-OPERATION OF THE TWO SIDES OVER THE ISSUE. HONG KONG PEOPLE BELIEVED THAT IF BRITAIN AND CHINA COULD DISCUSS THE ISSUE IN THE CO-OPERATIVE SPIRIT EVIDENT BEFORE 1989, THE AIRPORT TALKS WOULD PROGRESS SMOOTHLY.

COMMENT

7.

THE TONE OF THE EDITORIAL IS SMUG AND GLOATING. BUT IT IS ALSO EVIDENT THAT THE CHINESE ARE RELIEVED THAT NO ANNOUNCEMENT HAS BEEN MADE TO CANCEL OR SHELVE THE PROJECT.

FORD

YYYY

ΜΑΙΝ

87

DISTRIBUTION

94

PADS

LIMITED

HKD

ECONOMIC ADVISERS

ERD

FED

RAD

PS

PS/LORD CAITHNESS

PS/MR LENNOX-BOYD PS/PUS

MR BAYNE

SIR J COLES

JOINT DIRECTORATE

NEWS D

PLANNERS

PUSD

MR MILES

MR BURNS

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