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-7 JAN 1992
FM HONG KONG
TO DESKBY 05130OZ FCO
TELNO 14
OF 051055Z JANUARY 93
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
6
025011
MDHIAN 4272
CONSTITUTIONAL DEVELOPMENT: CHINESE ATTITUDE.
1. WHILE I ACCEPT THAT WE SHOULD NOT CONCLUDE FROM RECENT CHINESE STATEMENTS THAT THEIR OPPOSITION TO MY CONSTITUTIONAL PROPOSALS IS CRUMBLING, NEITHER SHOULD WE UNDERESTIMATE THE MODERATION IN THEIR ATTITUDE EVIDENT FROM THEIR STATEMENTS SINCE JUST BEFORE CHRISTMAS.
2. THE CHINESE ATTITUDE IN MID-DECEMBER APPEARED TO BE THE FOLLOWING:
- WE HAD REPORTS THAT THE ESTABLISHMENT OF A TRANSITIONAL AFFAIRS COMMITTEE WOULD BE ANNOUNCED BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE'S CONGRESS IN LATE DECEMBER. THERE WAS TALK OF THIS BEING SET UP IN SHENZHEN AND OF IT PRONOUNCING ON CONTRACTS AND FRANCHISES STRADDLING 1997.
- THE CHINESE HAD SAID THAT NON-CONVERGENCE IN ARRANGEMENTS FOR
THE LEGISLATURE WOULD MEAN NON-CONVERGENCE IN ALL FIELDS - ADMINISTRATIVE, JUDICIAL AND LEGISLATIVE. LU PING HAD TOLD ME THIS IN PEKING IN OCTOBER.
THE CHINESE WERE DISCOURAGING ANY COUNTER-PROPOSALS TO MY OWN.
THE CHINESE STATEMENT ON CONTRACTS AND FRANCHISES COULD HAVE BEEN A PRELUDE TO DEMANDS THAT CONTRACTS AND FRANCHISES STRADDLING 1997 AND SIGNED BEFORE CONSULTATION STARTED IN THE JLG WOULD NEED TO BE RECONSIDERED, AND THAT SMALL AS WELL AS BIG CONTRACTS AND FRANCHISES WOULD HAVE TO BE VETTED IN FUTURE.
THE STATEMENT DIRECTED AT JARDINES WAS A CRUDE THREAT TO UNDERMINE THEIR COMMERCIAL ACTIVITIES BECAUSE OF THEIR POLITICAL SUPPORT FOR MY PROPOSALS. SWIRES WERE ALSO RECEIVING THREATS (EG. AFTER HOWARD YOUNG VOTED FOR THE AIRPORT PLATFORM CONTRACT IN LEGCO). THE HONG KONG BANK
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