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037337 MOLIAN 8509
LADDER FOR THE GOVERNOR AND THE BRITISH GOVERNMENT TO CLIMB DOWN.
10.
PAPERS NOTED (4.3) THE HKMAO DIRECTOR LU PING TOLD A HONG KONG GENERAL CHAMBER OF COMMERCE DELEGATION IN PEKING THAT WHEN TALKS COULD BE RESUMED WOULD DEPEND ON WHETHER THE BRITISH SIDE WERE SINCERE AND WILLING TO PROCEED ON THE BASIS OF THE JD, BL AND PREVIOUS AGREEMENTS/UNDERTAKINGS. MR LU REITERATED IF TALKS WERE TO PROCEED, IT WOULD BE DIPLOMATIC NEGOTIATIONS BETWEEN TWO SOVEREIGN POWERS. IF NEGOTIATIONS LED TO AN AGREEMENT, THE TWO GOVERNMENTS HAD THE RESPONSIBILITY AND THE OBLIGATION TO IMPLEMENT IT FULLY. THE EXPRESS QUOTED AUTHORITATIVE SOURCES AS SAYING THERE HAD BEEN A BREAKTHROUGH IN THE DIPLOMATIC CONTACTS BETWEEN THE TWO SIDES AND TALKS WERE EXPECTED TO BE HELD IN PEKING IN MID-MARCH. THE SOURCES SAID THE CHINESE TEAM WOULD BE HEADED BY THE CHINESE VICE FOREIGN MINISTER JIANG ENZHU AND MEMBERS WOULD INCLUDE OFFICIALS FROM THE FOREIGN MINISTRY, HKMAO AND NCNA HONG KONG. THE BRITISH TEAM WOULD BE LED BY THE BRITISH AMBASSADOR TO PEKING AND MEMBERS WOULD INCLUDE OFFICIALS FROM THE FCO AND HKG. HKG OFFICIALS WOULD TAKE PART AS PART OF THE BRITISH TEAM. THE PAPER UNDERSTOOD THE TALKS WOULD BE BASED ON THE JD, BL AND PREVIOUS DIPLOMATIC EXCHANGES. SING TAO QUOTED SOURCES AS SAYING WITH THE CHINESE AGREEING TO TALK, THE HKG SHOULD BE PATIENT AND SHOULD NOT, ON ITS OWN SET A TIMETABLE FOR THE TALKS. TO DO SO WOULD GO AGAINST DIPLOMATIC CO-OPERATION. ACCORDING TO THE SOURCES LI PENG HAD INDICATED THE BASIS FOR TALKS SHOULD BE ON THE THREE COMPLIANCES'. THE CHINESE NO LONGER PRESSED THE BRITISH SIDE TO FIRST WITHDRAW THE GOVERNOR'S PACKAGE. 11. WAH KIU YAT PO (5.3) UNDERSTOOD THE MEMBERSHIP QUESTION WAS A STUMBLING LOCK. QUOTING SOURCES THE PAPER NOTED THE CHINESE SIDE HAD REFUSED TO ACCEPT THE SECRETARY FOR CONSTITUTIONAL AFFAIRS AS A MEMBER TO THE BRITISH TEAM AND INSISTED HKG OFFICIALS COULD AT MOST SIT IN AT MEETINGS. THE FCO IN A STATEMENT SAID THE GOVERNMENT AND EXCO WOULD REMAIN FULLY INVOLVED IN FORMULATING POLICIES ON HONG KONG'S CONSTITUTIONAL REFORMS DEVELOPMENT INCLUDING INVOLVEMENT IN TALKS WHICH MIGHT BE HELD WITH THE CHINESE SIDE. THE STATEMENT SAID HONG KONG OFFICIALS WOULD TAKE PART IN ANY SINO-BRITISH TALKS AND ANY AGREEMENT REACHED WOULD BE SUBMITTED TO LEGCO.
BUDGET
12.
BLANKET COVERAGE (4. 3) WAS ACCORDED TO THE RELEASE OF THE 1993/94 BUDGET BY THE FINANCIAL SECRETARY. REPORTS NOTED IT WAS A DEFICIT BUDGET BLENDING A RANGE OF TAX CUTS WITH PUBLIC SPENDING INCREASES ACROSS THE BOARD. IT WAS NOTED A BIGGER THAN PLANNED
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