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complex, but he was confident it would be resolved. HKMAO's Chen Zuo'er was quoted as saying the way the Chinese handled the airport and the political issues was to treat them separately The airport should be handled in accordance to the MOU. The Chinese still needed more time to consider and asked for increased transparency in the financial arrangements, greater monitoring by HK people and prior public consultation on the Airport Authority legislation. As for CT9, Chen said the matter would have to be discussed in the JLG.

Deng Xiaoping

14. The daughter of Deng Xiaoping, Deng Rong, Launched her biography "My Father, Deng Xiaoping" in HK and was quoted as saying (18.9) Deng was enjoying good health and hoped to come to HK in 1997 even if he were to come in a wheelchair and for "only a minute". The Express

The Express understood (17.9) in view of HK's political situation, the Chinese side would shortly release the full text of Deng's remarks to Former Primer Minister, Lady Thatcher, in 1982 on China's stance on the question of sovereignty. The source said Deng had recently read through the text once again.

15.

The September issue of Trend magazine carried an article on the latest directive by Deng on HK. Deng had warned against expecting too much from the Sino-British talks although China tried hard to reach an agreement with Britain on the basis of the 'three conformities'. Deng pointed out the Chinese side should make it explicit to the British side that if Britain violated the JD and Sino-British accords, then political and economic co-operation between the two countries would not be possible. China would not allow Britain to divide the HK community which might lead to unrest in future. The article quoted Jiang Zemin as saying with the talks heading for a showdown, the PWC should press ahead with its work and preparations should be made in the areas of propaganda, organisation and economics for the possibility of a major upheaval in HK.

Land Commission

16. The HK Economic Journal reported (15.9) the Chinese representative to the Land Commission, Sun Yenheng would be transferred back to Peking in October. The paper said an

announcement on his successor, who would be a Peking official with diplomatic experience, would be announced soon.

Stationing of Troops

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