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MDHIAN 1011 *

LAP KOK. THE GROUP VISITING PEKING IS LED BY WANG LIANGHUI AND VICTOR SIT. THE MEDIA REPORTED THAT THE GROUP BRIEFED LU PING ON ALTERNATIVE SITES FOR THE NEW AIRPORT YESTERDAY. THEY WERE OPPOSED TO BUILDING THE AIRPORT AT CHEK LAP KOK. LU REITERATED THE STANDARD LINE THAT THE AIRPORT SHOULD INVOLVE LOW INVESTMENT AND HIGH COST-EFFECTIVENESS. IT SHOULD NOT/NOT SADDLE THE SARG WITH MAJOR BURDENS. HKG SHOULD INCREASE THE TRANSPARENCY OF THE PROJECT. HONG KONG PEOPLE HAD THE RIGHT TO BE INFORMED ABOUT VARIOUS ASPECTS OF THE PROJECT, INCLUDING THE CHOICE OF LOCATION.

5. THE HONG KONG ECONOMIC JOURNAL SAID THAT MAJOR DIFFERENCES BETWEEN CHINA AND BRITAIN OVER EXAMINATION OF FRANCHISES STRADDLING 1997 HAD BECOME AN OBSTACLE TO RESOLVING THE AIRPORT PROBLEM. THE BRITISH BELIEVED THAT CHINA'S DEMANDS TO EXAMINE SUCH FRANCHISES WERE BEYOND THE SCOPE OF THE JD AND BL. BUT THE CHINESE THOUGHT THAT THE RIGHT OF EXAMINATION GAVE EXPRESSION TO THEIR SOVEREIGNTY. IF HKG GRANTED FRANCHISES STRADDLING 1997 WITHOUT CHINA HAVING EXAMINED THEM, THEN IT WOULD BREACH THE BL.

COMMENT

6. LU PING'S SHIFT IN EMPHASIS TO SUIT HIS AUDIENCE IS PLAINLY

EVIDENT FROM HIS TWO MEETINGS WITH THE HONG KONG DELEGATIONS. THE CHINESE CONTINUE TO TRY AND APPEAR REASONABLE AND RECEPTIVE

TO ALL POINTS OF VIEW.

WILSON

YYYY

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SIR J COLES

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