CONFIDENTIAL
052675
MDHIAN 0198
TO CHINA THEY EMPHASISED THE VALUE OF HONG KONG AS AN ECONOMIC
WINDOW.
10. WATANABE WELCOMED SIGNS OF MOVEMENT ON THE HONG KONG AIRPORT. THE SECRETARY OF STATE SAID THERE WAS DIFFICULT BARGAINING AHEAD. THE GOVERNOR PLANNED TO LAUNCH HIS CONSTITUTIONAL PROPOSALS ON 7 OCTOBER. HE HIMSELF WOULD GIVE THE CHINESE FOREIGN MINISTER ADVANCE NOTICE OF THESE ON 25 SEPTEMBER.
11. WATANABE COMMENTED THAT THE CHINESE APPEARED CONCERNED THAT THE UK WOULD LEAVE DEBTS BEHIND IT IN 1997. THE SECRETARY OF STATE SAID THEY FAILED TO UNDERSTAND THAT WE WOULD IN FACT LEAVE HUGE RESERVES. HE AGREED WITH WATANABE THAT THE UK AND JAPAN SHOULD REMAIN IN CLOSE TOUCH ON HONG KONG.
12. ACTION: (FOR HONG KONG DEPT) THE SECRETARY OF STATE WOULD LIKE TO SEND A PERSONAL MESSAGE TO WATANABE IMMEDIATELY AFTER THE GOVERNOR'S SPEECH ON 7 OCTOBER, TO BRIEF HIM ON THE BACKGROUND TO THE GOVERNOR'S CONSTITUTIONAL PROPOSALS, AND TO BRING HIM UP TO DATE ON THE AIRPORT. GRATEFUL FOR A DRAFT.
HANNAY
YYYY
ΜΑΙΝ
391
FCO
NNNN
DISTRIBUTION
391
FED
3
PAGE
CONFIDENTIAL
Page 60Page 61