UNCLASSIFIED
022650
MDHIAN 7206
THE TALKS.
TALKS.
4.
WAH KIU YAT PO PUBLISHED AN INTERVIEW IN WHICH THE GOVERNOR SAID THE BRITISH SIDE WOULD INSIST ON OBJECTIVE CRITERIA FOR THE THROUGH TRAIN. BUT HE POINTED OUT THAT IT WOULD BE VERY DIFFICULT FOR THE BRITISH SIDE TO INTRODUCE THE NATIONALITY RESTRICTION IN 1995, AND THE MATTER WOULD NEED TO BE DEALT WITH BY THE SAR GOVERNMENT IN 1997. THE GOVERNOR SAID THAT CHINESE OFFICIALS THOUGHT THEY WERE MAKING CONCESSIONS OR GIVING BENEFITS TO THE BRITISH BY GRANTING AGREEMENT ON ECONOMIC ISSUES. IN FACT THESE MATTERS WERE BENEFICIAL TO HONG KONG, AND THE LONG TERM INTERESTS OF CHINA.
5. IN AN ADVERTISEMENT IN MING PAO, UDHK NOTED THAT DOUBTS ABOUT BRITAIN'S SOFTENING STANCE, THE SETTING UP OF THE PREPARATORY WORKING COMMITTEE FOR THE PC, AND THE LACK OF TRANSPARENCY IN THE TALKS WERE WORRYING DEVELOPMENTS FOR HONG KONG PEOPLE.
AC MEETING.
6.
UKREP WAS REPORTED TO HAVE SAID, AFTER THE CONCLUSION OF THE AC MEETING, THAT SOME PROGRESS HAD BEEN MADE, AND THAT HE DID NOT FEEL THAT THE CHINESE SIDE WAS PLAYING DELAYING TACTICS IN THE MEETING. THE BRITISH SIDE HAD RAISED SOME NEW SUGGESTIONS AND WAS AWAITING THE CHINESE RESPONSE. GUO FENGMIN WAS NOTED AS SAYING THAT MORE DISCUSSIONS WOULD BE REQUIRED.
7.
MING PAO UNDERSTOOD THAT NO AGREEMENT WAS REACHED IN THE AC MEETING BECAUSE THE CHINESE SIDE WAS AWAITING THE OUTCOME OF THE CABINET MEETING. BEFORE GETTING A CLEAR PICTURE OF BRITISH STRATEGY IN THE POLITICAL TALKS, THE CHINESE SIDE WOULD NOT COME TO ANY AGREEMENT WITH THE BRITISH ON THE AIRPORT. QUOTING SOURCES CLOSE TO THE AC TALKS, THE PAPER SAID THAT BOTH SIDES HAD AGREED THAT ANOTHER AC MEETING WOULD BE HELD BEFORE THE END OF JULY. THE HONG KONG DAILY NEWS QUOTED CHINESE SOURCES IN THE AC AS SAYING THAT THE BRITISH SIDE HAD AGREED TO FURTHER INCREASE CAPITAL INJECTION AND REDUCE LOANS. BUT THE PROPOSALS STILL FELL SHORT OF THE CHINESE SIDE'S DEMANDS. THE SOURCES SAID THE RECLAMATION PROJECT WOULD NOT BE RESOLVED BEFORE AN OVERALL AGREEMENT WAS REACHED ON FINANCIAL ARRANGEMENTS. TIN TIN DAILY NEWS, QUOTING CHINESE SOURCES, SAID THAT THE DEADLOCK WAS DUE TO BRITISH UNWILLINGNESS TO INCREASE CAPITAL INJECTION. THE SOURCES HOPED THAT
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