UNCLASSIFIED
071326
MDLIAN 8451
SPLIT IN THE HONG KONG PEOPLE. THEREFORE THEY HAD SUGGESTED TO THE PRIME MINISTER FOR THE BRITISH SIDE TO TAKE THE INITIATIVE TO AMEND THE PROPOSALS AS A GESTURE OF GOODWILL TO OPEN COMMUNICATIONS WITH THE CHINESE SIDE. ACCORDING TO MR LEE, THE PRIME MINISTER CONSIDERED THE GOVERNOR'S PLANS WERE PROPOSALS ONLY AND IT WAS ACCEPTED THAT IT WAS DESIRABLE TO TALK OVER WITH THE CHINESE AND A WAY COULD BE FOUND TO DO SO. THE EXCO WAS NOW CONSIDERING THESE PROPOSALS AND LEGCO WOULD AT A LATER STAGE DECIDE WHETHER THEY WOULD ACCEPT OR AMEND THEM. THE RESULTS SHOULD BE OPEN, FAIR AND ACCEPTABLE TO HONG KONG PEOPLE. THE PRIME MINISTER ALSO AGREED THAT DIALOGUE WITH THE CHINESE SIDE WAS IMPORTANT. BASED ON PAST EXPERIENCES, DISPUTES BETWEEN THE CHINESE AND BRITISH SIDES COULD BE RESOLVED. THEREFORE, THERE WAS NO REASON WHY THIS PRESENT DISPUTE COULD NOT BE RESOLVED. MR LEE INDICATED THE CRC COULD NOT SAY WHETHER THEIR LONDON TRIP WAS SUCCESSFUL OR NOT BUT IT ACHIEVED THE PURPOSE OF REFLECTING TO THE PRIME MINISTER THE SERIOUS SITUATION IN HONG KONG.
MF N
16. REPORTS NOTED (14.1) THE GOVERNOR, WHO WAS EXPECTED TO VISIT WASHINGTON THIS YEAR, TOLD THE INTERNATIONAL HERALD TRIBUNE THAT HE DID NOT WANT TO SEE DISCUSSIONS ON HONG KONG'S POLITICAL DEVELOPMENT BE CAUGHT UP IN ISSUES OF INTERNATIONAL TRADE. THE GOVERNOR SAID HONG KONG DEPENDED ON AND STOOD FOR FREE AND OPEN TRADE AND WOULD GO ON ARGUING FOR THAT. HE SAID IT WAS INEVITABLE THE OUTSIDE WORLD WOULD BE CONCERNED ABOUT HONG KONG'S STATUS AS AN INTERNATIONAL CITY, BUT IT WAS RECOGNISED THE SUCCESSFUL IMPLEMENTATION OF THE JD WAS AN ISSUE FOR BRITAIN, CHINA AND HONG
KONG.
17. IN AN INTERVIEW WITH THE HONG KONG ECONOMIC JOURNAL (20.1) THE GOVERNOR SAID THE MFN WAS AN IMPORTANT POLITICAL ISSUE IN THE US. HE CONSIDERED MR CLINTON HAD A DIFFERENT POINT OF VIEW FROM MR BUSH ON THE MFN ISSUE. THE GOVERNOR INDICATED HE WOULD DO HIS BEST TO URGE THE US GOVERNMENT TO RENEW CHINA'S MFN STATUS WITHOUT ANY CONDITIONS. HE INDICATED HE HAD ALREADY LOBBIED US GOVERNMENT OFFICIALS AND CONGRESSMEN VISITING HONG KONG ON THIS. HE EXPLAINED CHINA'S MEN WAS VERY IMPORTANT TO HONG KONG. HE HOPED THAT HONG KONG'S POLITICAL REFORMS WOULD NOT BE LINKED TO
THE MFN ISSUE.
PATTEN
5
PAGE UNCLASSIFIED