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MDLIAN
FINANCIAL PACKAGE. ACCORDING TO THE PAPER'S UNDERSTANDING, THE CHINESE SIDE HAD ASKED FOR A GOVERNMENT CAPITAL INJECTION OF DOLLARS 60 BN WHILE THE GOVERNMENT'S THIRD PROPOSED FINANCIAL PACKAGE HAD AGREED TO A CAPITAL INJECTION OF ONLY LESS THAN DOLLARS 50 BN AND LOANS OF MORE THAN DOLLARS 30 BN. THE SOURCES ALSO SAID THE BRITISH SIDE DID NOT THINK IT WAS NECESSARY TO SET UP A COST CONTROL GROUP AS THE CHINESE SIDE SUGGESTED. SEVERAL OTHER PAPERS ALSO QUOTED CHINESE OR GOVERNMENT SOURCES AS SAYING SIMILAR THINGS.
PWC
20. QUOTING RELIABLE SOURCES, SING TAO DAILY SAID THE PWC SECRETARIAT PLANNED TO SET UP A LIAISON POINT AT HUTCHISON. HEADED BY NCNA OFFICIAL QIN WENJUN, THE LIAISON OFFICE WOULD BE SET UP IN SEPTEMBER AND STAFFED BY PEOPLE DEPLOYED FROM THE NCNA. CHINESE SOURCES SAID THE OFFICE WAS TO FACILITATE PWC MEMBERS IN THEIR WORK. SOURCES DID NOT RULE OUT THE POSSIBILITY THAT THE LIAISON OFFICE WOULD CO-OPERATE WITH SOME ORGANISATIONS SUCH AS THE 'ONE COUNTRY, TWO SYSTEM' ECONOMIC INSTITUTE IN COLLECTING PUBLIC VIEWS. THE REPORT UNDERSTOOD THE OFFICE AT HUTCHISON HOUSE HAD THE SUPPORT
OF LI KA-SHING.
PLA
21. AN ASSISTANT TO THE NCNA HK DIRECTOR AND MEMBER OF THE PWC, LEE WAITING, WAS QUOTED (30.7) AS SAYING IN THE NEXT PWC SUB-GROUP ON SECURITY TO BE HELD IN LATE AUGUST OR EARLY SEPTEMBER, ONE ITEM TO BE DISCUSSED WOULD BE WHETHER THERE SHOULD BE LEGISLATION GOVERNING THE STATIONING OF PLA TROOPS IN HK. LEE POINTED OUT THE PLA STATIONED IN HK WOULD BE SUBJECT TO PRC AND HK LAWS PLUS PLA REGULATIONS
22. REMARKS BY LU PING (2.8) THAT NO DECISION HAD BEEN TAKEN ON THE SIZE AND THE LOCATION OF CHINESE TROOPS TO BE STATIONED IN HK WERE WIDELY NOTED. THE QUESTION WAS BEING DISCUSSED IN THE JLG. LU DISMISSED EARLIER COMMENTS BY XU HUIZI, PLA DEPUTY CHIEF OF STAFF THAT TROOPS WOULD BE STATIONED IN URBAN DISTRICTS AND RURAL AREAS AS HYPOTHETICAL. LU SAID HK PEOPLE SHOULD SET THEIR HEART AT EASE AS THE STATIONING OF TROOPS IN HK WOULD BE HANDLED IN STRICT ACCORDANCE WITH THE BL. THE TROOPS WOULD BE RESPONSIBLE FOR DEFENCE MATTERS ONLY WHILE SARG WOULD HANDLE ITS OWN LAW AND ORDER MATTERS. LU SAID THE CHINESE GARRISON WOULD HAVE TO OBSERVE LOCAL LAWS AS
WELL AS CHINA'S LAWS.
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