CONFIDENTIAL

133003 MDHIAN 0768

PAST AND WE ARE GLAD TO NOTE THAT THE CHINESE SIDE INTEND IN FUTURE TO TAKE A POSITIVE ATTITUDE TO POST-1997 INVESTMENT IN HONG KONG.

5. IN ANSWER TO SUPPLEMENTARIES WE WILL DRAW ON YOUR TELNO 948

WE WILL ALSO SAY, IF TO PEKING AS MODIFIED BY OUR TELNO 2801. PRESSED, THAT THE SUBJECT OF FRANCHISES AND CONTRACTS STRADDLING 1997 IS UNDER DISCUSSION AT JLG XXV, AND PROCEEDINGS OF THE JLG DISCUSSION ARE CONFIDENTIAL. (IF PRESSED TO DISCLOSE THE LIST OF FRANCHISES WHICH WE HAVE GIVEN TO THE CHINESE, WHICH IN ANY CASE HAS BEEN DISCLOSED IN TA KUNG PAO, WE SEE NO OBJECTION TO DOING SO. BUT WE WILL UPDATE THE LIST TO REFLECT AGREEMENTS ALREADY REACHED IN JLG ON THE CLP AND CETS FRANCHISES. WE WILL ALSO AVOID BEING DRAWN INTO A DEBATE IN LEGCO ON THE INTERPRETATION OF BL 158 ON (INTERPRETATION OF THE BASIC LAW) AND WHO IS RESPONSIBLE FOR DECIDING WHETHER OR NOT A PARTICULAR CONTRACT IS COMPATIBLE WITH THAT LAW.)

6. UKREP JGL CONCURS.

7.

GRATEFUL FOR YOUR COMMENTS DESKBY 08003OZ.

PATTEN

YYYY

DISTRIBUTION

72

ΜΑΙΝ

63

.HK POLICY

HKD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

.AND MS BROOKS

NEWS D

PLANNERS

RAD

PS

PS/MR GOODLAD

SIR J COLES

MR APPLEYARD MR HUM

ADDITIONAL

9

CAOFF//SIR R BRAITHWAITE

CAOFF//MISS NEVILLE-JONES

CAOFF MR

SIBSON

~~~~

CAOFF //MS D CORNER CAOFF//MR CHARLTON

Рырм

PAGE

3

CONFIDENTIAL

Share This Page