CONFIDENTIAL
3.
(c) FCO reservations about asking Chinese for Airport
Committee Joint Commuqués
(d) Progress in JLG on IPPAS
To review the HKG/CPG confidential financial dialogue and discuss the scope for inducing China to take a
more responsible and less interfering attitude towards Hong Kong's economic and financial management it ta
4.
To discuss current HKG thinking on privatisation of KCRC and contracting out of services to private sector.
5. To identify and discuss other economic or financial issues which might prove a source of friction with the Chinese or cause difficulties for HM Treasury, eg
possible HKG reactions to an economic and fiscal
down-turn eg as a result of US non-renewal of MFN for China; serious labour unrest; international recession; interruption of economic development in Guangdong; new western sanction against China/new COCOM restrictions on high technology exports; a Chinese economic squeeze on Taiwan; China/GATT problems;
Civil service pensions funding;
major new infrastructure projects, eg sewerage renewal;
arrangements for transfer of assets and liabilities to
SARG in 1997.
6.
To pave way for a further round of discussion in London before Summer break and possible arrival of new Governor (preceded by talks here with K Y Yeung in May).
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CONFIDENTIAL