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072034 MDLIAN 78
SAID DIFFERENCES OVER THE FINANCIAL ARRANGEMENTS AND CHINA'S DEMAND FOR CONSULTATIONS OVER MAJOR AIRPORT MATTERS STRADDLING 1997 HAD BEEN WIDENED BECAUSE LONDON HAD TOUGHENED ITS STANCE (25.5).
6. SING TAO JIH PAO (25.5) QUOTED A LABOUR MP AS SAYING THAT THE FAILURE OF THE RECENT ROUND OF AIRPORT TALKS INDICATED THAT PEKING INTENDED TO TIGHTEN CONTROLS OVER HONG KONG AFTER 1997. HE WAS WORRIED THAT IF CHINA DID NOT HONOUR ITS PROMISE OF 'ONE COUNTRY, TWO SYSTEMS' THE TERRITORY'S ECONOMY WOULD BE ADVERSELY AFFECTED.
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7. THE DIRECTOR OF THE HONG KONG AND MACAU AFFAIRS OFFICE. LU PING, REITERATED THAT HONG KONG NEEDED A NEW AIRPORT AND THAT CHINA HAD NO INTENTION OF INTERFERING IN HONG KONG'S AFFAIRS. MR LU CALLED ON THE HKG TO MAKE PUBLIC THE AIRPORT PROPOSALS SO THAT HONG KONG PEOPLE COULD JUDGE THE MERITS OF THE PLANS PUT FORWARD BY BOTH SIDES.
8. THE HONG KONG ECONOMIC JOURNAL (27.5) SAID THAT ALTHOUGH THE HKG HAD INTENDED TO STAND FIRM ON THE AIRPORT ISSUE, THE FOREIGN OFFICE HAD DIFFERENT VIEWS AND THAT HONG KONG WAS WAITING FOR THE SENIOR LEVEL OF HMG TO MAKE THE FINAL DECISION.
9. TVB, QUOTING A HKG SOURCE (26.5) REPORTED THAT THE GOVERNMENT WOULD CONSIDER PROPOSING AT THE COMING EXCO MEETING THAT THE AIRPORT PROJECT BE SHELVED. THE REPORT WAS CARRIED BY MANY PAPERS ON 27.5. ACCORDING TO THE STATION, THE MAIN DISPUTE WAS ON HOW TO SPECIFY IN THE AGREEMENT THE FORM OF CHINESE PARTICIPATION IN THE AIRPORT PROJECT. THE MEDIA NOTED THAT A HKG SPOKESMAN DECLINED TO COMMENT ON THESE REPORTS. THE SCMP (27.5) QUOTING SOURCES CLOSE TO THE BRITISH NEGOTIATING TEAM, REPORTED THAT CHINA WANTED ENDLESS CONSULTATION ON AIRPORT PROJECTS, MAKING IT UNACCEPTABLE FOR BRITAIN TO AGREE TO THE DRAFT PROPOSAL BY PEKING OFFICIALS. THE PAPER NOTED THAT THE CHINESE PROPOSAL CONTAINED TWO MAIN POINTS. THE FIRST POINT WAS CHINA'S REAFFIRMATION THAT THE BRITISH GOVERNMENT WOULD BE RESPONSIBLE FOR THE ADMINISTRATION OF HONG KONG BEFORE 1997 AND THE SECOND POINT WAS THAT CHINA SOUGHT AN UNDERSTANDING BY THE BRITISH SIDE TO CONSULT THEM ON ALL MATTERS WHICH STRADDLED 1997.
10. MING PAO (28.5) REPORTED THAT THE EXCO AT A SPECIAL MEETING THE DAY BEFORE WAS UNABLE TO RESOLVE THE ISSUE. THERE WAS A POSSIBILITY THAT THE PROJECT WOULD BE SHELVED BUT THE COUNCIL WAS
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