UNCLASSIFIED

116424

MDLIAN 0694

UNCLASSIFIED

FM HONG KONG

TO PRIORITY FCO

TELNO 145

OF 15090OZ JANUARY 91

HKC241/5

сс раса

11

17 pw BOR: policy

pa

Chinese policy

a HK (paar 10, 12, 18).

INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON

INFO ROUTINE PEKING, UKMIS GENEVA, UKREP JLG HONG KONG INFO ROUTINE HKGO GENEVA, HKGO WASHINGTON, HKGO NEW YORK INFO ROUTINE HKGO SAN FRANCISCO

RM 15/1

PART ONE OF TWO

HONG KONG AGREEMENT : PRESS COVERAGE : WEEKLY ROUNDUP

SUMMARY

1. THE SECOND ROUND OF EXPERT TALKS ON THE REPLACEMENT AIRPORT PROJECT IN PROMINENT AND EXTENSIVE COVERAGE. NEWS RELATING TO HONG KONG'S FUTURE WAS MODERATELY REPORTED.

AIRPORT

2. WELL INFORMED SOURCES WERE QUOTED BY THE EXPRESS (10.1) AS SAYING THAT THE SECOND ROUND OF TALKS WOULD MAINLY PAVE THE WAY FOR HONG KONG GOVERNOR'S VISIT TO PEKING, BUT IT WAS NOT EXPECTED THAT THE CHINESE SIDE WOULD EXPRESS SUPPORT FOR THE AIRPORT PROJECT. A NUMBER OF PAPERS NOTED THAT THE HONG KONG TEAM WOULD NOT BE ABLE TO GIVE THE CHINESE SIDE TOO MUCH INFORMATION AS A REPORT ON FINANCING ARRANGEMENTS WOULD NOT BE AVAILABLE UNTIL MARCH OR MAY. THE MEDIA (10.1) NOTED THAT WHEN RECEIVING THE BRITISH TEAM ON ITS ARRIVAL IN PEKING, LUO JIAHUAN SAID THAT THE CHINESE SIDE HAD ALL ALONG ADOPTED AN OPEN, ACTIVE AND CO-OPERATIVE ATTITUDE IN DISCUSSIONS WITH THE BRITISH SIDE AND THAT IT WAS HOPED THAT THE SECOND ROUND OF TALKS WOULD BE FRANK AND USEFUL. HE SAID THAT IT WAS HOPED THAT THERE WOULD BE MORE PRIVATE-SECTOR PARTICIPATION IN THE PROJECT, PREFERABLY MORE THAN 50 PER CENT, THEREBY REDUCING THE HONG KONG GOVERNMENT'S EXPENDITURE, THAT CHINESE ENTERPRISES MIGHT NOT HAVE THE CAPABILITY TO PARTICIPATE, AND THAT PREFERENCE SHOULD BE GIVEN TO HONG KONG INVESTORS SO THAT THE PROFITS WOULD GO TO HONG KONG PEOPLE INSTEAD OF FOREIGNERS. THE FORMER PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE, JOHN KAMM, WAS QUOTED (12.1) AS SAYING THAT A STATEMENT LIKE THAT BY MR LUO AMOUNTED TO A VIOLATION OF THE JD AND BL PROVISIONS WHICH HAD ENSURED THAT FREE COMPETITION FOR FOREIGN FIRMS WOULD BE UPHELD AFTER 1997.

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