PERSONAL AND CONFIDENTIAL
The Economy
Discussion centred on the airport. The idea of a "political critical path analysis" flowed from the Secretary of State's wish to make the best use of the Qian visit in terms of anticipating likely Chinese worries and dealing with them before they delayed progress on the airport. He also commented that problems such as contingent liabilities and cost increases were more likely to be understood by those on the Chinese side with experience of business (and for that matter by Li Peng) than by Chinese bureaucrats. He thought that we should be using Hong Kong businessmen to get the message over in Peking. A message from the Prime Minister to Li Peng might also be useful depending on the reactions we got in the Airport Committee and during Qian's visit here.
Chinese Foreign Minister's Visit
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We had put to the Secretary of State in advance a note based on our exchange of telegrams with you, UKRep JLG and Peking some weeks ago. The Secretary of state accepted that we should keep public expectations down, and that the meeting would not be an occasion to do detailed JLG business. agreed however that we should try to give the ASA separation issue a political push; that we should make a firm restatement of our position on defence lands; that we should take Qian through the main airport issues; that he should reassure Qian that there was no question of moving away from executive-led Government in Hong Kong; urge the Chinese to deal sensibly with the new LegCo; and put our views on the record about Transitional Affairs Advisers. The Secretary of State added that Lord Caithness should make a point of presenting his talks in Hong Kong in the first week of March as an opportunity to discuss issues which were likely to come up during the Chinese Foreign Minister's visit.
Looking further ahead, the Secretary of State agreed that it was right to plan on the basis that his next six monthly meeting with Qian in September would probably be in the margins of the UNGA, rather than a separate visit to Peking, given the pressures on him at that time as a result of our Presedency of the EC.
cc: A C Galsworthy Esq, CMG UKRep JLG Hong Kong
Sir R McLaren KCMG Peking
MAIAAS
Sir J Coles
PERSONAL AND CONFIDENTIAL