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047545

MDHIAN 8392

HIGHLIGHTED JIANG'S REMARKS THAT IF BOTH SIDES COULD STAND AT A VINTAGE POINT: LOOK FURTHER AHEAD: AND ADHERE STRICTLY TO THE ''THREE CONFORMITIES'', IT WOULD NOT BE DIFFICULT TO REACH AN AGREEMENT. IF BOTH SIDES HAD THE SINCERITY, THERE WOULD BE A SMOOTH TRANSITION AND TRANSFER OF POWER WHICH WOULD BENEFIT HK, CHINA AND BRITAIN.

5. REFERRING TO S OF S'S VISIT, THE VISITING HKMAO VICE-DIRECTOR WANG QIREN SAID THAT CHINA HAD FULLY DEMONSTRATED HER SINCERITY AND CONCERN FOR HK'S PROSPERITY AND STABILITY. HE WELCOMED THE FACT THAT THERE WOULD BE ANOTHER MINISTERIAL MEETING IN SEPTEMBER. COMMENTING ON THE GOVERNOR'S REMARKS TO THE GUARDIAN THAT HK COULD STILL OPERATE IN THE ABSENCE OF AN AGREEMENT WITH CHINA ON THE POLITICAL REFORMS AND THAT S OF S'S VISIT WAS NOT A KOWTOW TRIP, WANG SAID THAT HE DID NOT WANT TO SEE ANY REMARKS THAT WOULD DAMAGE THE SINO-BRITISH TALKS. DURING A MEETING WITH SOME AIRPORT CONSULTATIVE COMMITTEE MEMBERS, WANG WAS ALSO QUOTED AS ENCOURAGING THE ACC TO STRENGTHEN ITS MONITORING ROLE.

6.

QUOTING BRITISH SOURCES, THE HK ECONOMIC JOURNAL SAID THAT THE MINISTERIAL MEETING WAS A 'WATERSHED'' SIGNIFYING THE RESTORATION OF TRUST AND CO-OPERATION BETWEEN BOTH SIDES. EXCO SOURCES TOLD THE PAPER THAT THE GOVERNOR'S PACKAGE WAS NOW A THING OF THE PAST. THE GOVERNOR WOULD BE PREPARED TO AMEND HIS PROPOSALS IF THE ULTIMATE AGREEMENT WOULD INCLUDE A THROUGH TRAIN AND WAS ACCEPTABLE TO HK PEOPLE. CHINESE SOURCES IN PEKING SAID THAT S OF S HAD DEMONSTRATED SINCERITY AND WILLINGNESS TO ABIDE BY THE THREE CONFORMITIES''. THE CHINESE SIDE WOULD THEREFORE CONSIDER FORMULATING OBJECTIVE CRITERIA FOR THE THROUGH TRAIN. SOURCES SAID THAT THE FACT THAT JIANG ZEMIN HAD A MEETING WITH S OF S WAS AN INDICATION OF THE RESUMPTION OF SINO-BRITISH CO-OPERATION.

7. SING TAO DAILY QUOTED CHINESE SOURCES AS SAYING THAT ALTHOUGH LITTLE PROGRESS HAD BEEN MADE, BOTH SIDES HAD MOVED A STEP FORWARD. SOURCES BELIEVED THAT GOOD RESULTS WOULD BE ACHIEVED IN THE SEPTEMBER MEETING.

8.

MING PAO LEARNT THAT THE POLITICAL BLUEPRINT HANDED OVER TO THE CHINESE SIDE WAS VASTLY DIFFERENT FROM THE GOVERNOR'S PACKAGE. THE PAPER UNDERSTOOD THAT THE BRITISH SIDE WOULD HAVE MORE FLEXIBILITY RELATING TO THE COMPOSITION OF THE ELECTION COMMITTEE, WHICH WOULD BE BASED ON THE BL.

9.

SEPARATELY, JIANG ZEMIN, IN AN INTERVIEW WITH A MEXICAN

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