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025774
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(II) WHEN LU PING MET REPRESENTATIVES OF ONE OF HONG KONG'S PRO-CHINA PARTIES ON 22 DECEMBER, HE TOLD THEM THAT CHINA DID NOT INTEND TO SET UP A SECOND CENTRE OF POWER OR SHADOW GOVERNMENT, EVEN IF LEGCO PASSED THE GOVERNOR'S PROPOSALS UNAMENDED. HE ALSO MADE A NUMBER OF OTHER COMMENTS WHICH WERE CLEARLY DESIGNED TO SOUND MORE CONCILIATORY.
(III) THE MEETING OF THE NATIONAL PEOPLE'S CONGRESS STANDING COMMITTEE DID NOT ANNOUNCE ANY DECISIONS ON HONG KONG.
(IV) IN AN INTERVIEW WITH HONG KONG TV ON 3 JANUARY LU PING RULED OUT A NUMBER OF THE MORE EXTREME OPTIONS: THE CHINESE WOULD STICK TO THE JOINT DECLARATION WHATEVER THE STATE OF SINO-BRITISH RELATIONS: THERE WOULD BE NO SHADOW GOVERNMENT CONTRACTS AND FRANCHISES WOULD CONTINUE TO BE DISCUSSED IN THE JOINT LIAISON GROUP. LU PING ADDED THAT THE CHINESE WERE PREPARED TO SET UP AN ADVISORY BODY TO PREPARE THE POST-1997 GOVERNMENT AND LEGISLATURE, BUT HAD NOT YET DONE SO.
6. IT IS NOT CLEAR WHAT HAS PRODUCED THIS MODERATION OF THE CHINESE PUBLIC LINE. THE CHINESE SEEM TO HAVE REALISED THAT LEGCO'S CONSIDERATION OF THE GOVERNOR'S PROPOSALS WILL TAKE SOME TIME, AND THAT IN THE PROCESS THE PROPOSALS MAY WELL BE AMENDED IN DIRECTIONS THEY FAVOUR. CONCERN NOT TO DAMAGE THEIR RELATIONS WITH THE CLINTON ADMINISTRATION AND ANXIETY THAT THE STEPS THEY
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