28-FEB-1992 13:00

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The Chinese view on the current problems, however, is that attention has to be paid to them right now or else they may spread in the days to come. On the privatization issue, for example, contracts and franchises for the major projects relating to the construction of the new airport will be granted one after another from this year on, a slip of attention will do damage to the interests of the future

SAR.

Moreover, the change of the political system will As there will be a also involve the 1995 LegCo election. direct transition of Legislative Council to the one in 1997, the Chinese side are worried that changes political system will lead to non-convergence Basic Law.

in with the

The view of the Chinese side is that it will be in the airport necessary to revive a... matter discussed negotiations, namely that prior consultations between the two sides are necessary on important transitional matters straddling 1997. In the series of talks to take place next month, the Chinese side will mention that in the coming 5-year transitional period, all major policy decisions of the British Hong Kong Government must converge with the Basic Law and that the Chinese side must be consulted.

PRR-SINO

TOTOL D A5

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