Note to Mary Maxwell: Herewith, suggested basis for curtain- raiser to the Prime Minister is visit to China. I have checked

with Downing Street and theỷ will give me final details on

Tuesday.

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HONG KONG LANDMARK IN

ANGLO-CHINESE RELATIONS!

by Alan Symes, LPS staff

London (LPS): The premiers of Britain and China, John Major and Li Peng, are shortly to signal the start of one of the world's

largest construction projects, providing the infrastructure necessary for Hong Kong's expansion into the 21st century.

Estimated to cost in the order of 9 billion Hong Kong

(£7.6 billion) dollars, the scheme will feature a new airport, two suspension

a

New

bridges, and an improved rail and road network linking the main development off Lantau Island with Kowloon.

Mr Major and Mr Li will sign a Memorandum of Understanding

questions on the new airport and related projects when they meet in Beijing in early September to discuss bilateral and international

matters.

It is expected that the British Prime Minister's visit to the Chinese capital, at the invitation of Mr Li, will boost bilateral relations in the run up to Hong Kong's transfer to Chinese sovereignty in 1997.

The agreement on the new airport at Chek Lap Kok and associated schemes is a significant milestone on a long road of sometimes difficult discussions.

Fresh Tapatus

Talks have been held between the two sides over a number of months, culminating in an agreement on the airport project and the initialling of a memorandum of understanding in Beijing on 20 June.

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Both Britain and China wish to preserve stability and prosperity, with a strong and effective Hong Kong Government.

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