Meeting on 21st December 1993

Ambassador Ma

Counsellor Zhang Zhiming

Pan Hejun, Second Secretary, Chinese Embassy Sir Adrian Swire, D.R.Y. Bluck, H.M.P. Miles

Ma opened; the current situation between UK and PRC is very serious. UK unilaterally broke off talks in 17th round by submitting legislation covering elections to Legco without PRC agreement. PRC consistently stated that talks would end if HMG tabled legislation without PRC agreement. Thus, PRC regarded HMG's current public posturing for an 18th round as hypocritical.

HMG under Patten appears confrontational and unilateral; HMG's conduct is in contravention of Article (2) of Joint Declaration which states that as 1997 approaches, consultation between PRC and HMG should increase. Under Patten, the reverse has happened. Since there is no cooperation from HMG, PRC will make their own arrangements, and take separate steps, to ensure "Hong Kong's stability and prosperity".

Ma confirmed that PRC would do their best to uphold the Joint Declaration and Basic Law. He emphasised that PRC would dismantle in 1997 any arrangements UK had made unilaterally over the local and Legco elections beforehand.

HMG had made an entirely wrong assessment of the PRC's position; the current policy seemed to be based on the mistaken belief that PRC would not (dare) change Hong Kong electoral arrangements made in 1994/95 when ultimate responsibility became Peking's in 1997; HMG appeared to believe that the current leadership would change over next 3 years, which in turn would lead to PRC accepting HMG's election policy; there was other hypothesis too about GATT/Taiwan etc; all these assessments were wrong and hence UK's policy was wrong too.

Thus, Ma confirmed that there would be no more talks; the spirit of cooperation between the two Governments has gone, as has the friendship.

Ma's plea, therefore, to ACS was to use his knowledge and understanding of Hong Kong/China to help persuade HMG that their current policies were wrong and would damage UK/PRC relationships for a long time to come. The phrase "disastrous situation" was used. Swires must endeavour to persuade HMG to abandon their current confrontational policy. It was ironic that whilst PRC/USA relations are improving, following the Presidents' meeting in Seattle, UK's are worsening. Ma emphasised that he was not threatening or pressurising Taikoo in any way. He fully appreciated their long term position and policy in Hong Kong and the many relationships Taikoo have with PRC business interests. He was seeking an ACS intervention with HMG for the benefit of UK/PRC friendship. PRC would be doing their best to ensure continued stability and prosperity for Hong Kong, although inevitably - in current political climate between PRC and UK there would be some consequential economic damage.

H.M.P.M.

21.12.93

Taikoo Swire Group

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