UNCLASSIFIED
023302
MDLIAN 5161
9. THE GOVERNOR EXPRESSED HOPE (4.9) THAT THE 10TH ROUND WOULD ACHIEVE PROGRESS. THE GOVERNOR WAS QUOTED AS SAYING THERE WAS NO CHANGE IN THE STAND OF THE BRITISH SIDE AND THERE SHOULD BE OBJECTIVE CRITERIA FOR THE THROUGH TRAIN. HE AGAIN DECLINED TO SET A DEADLINE BUT INDICATED IF NO AGREEMENT COULD BE REACHED, THE BRITISH SIDE WOULD HAVE TO TAKE THEIR RESPONSIBILITIES IN THE ADMINISTRATION OF HK BEFORE 1997.
10. THE PAPER NOTED (4.9) A CNA SIGNED ARTICLE HAD DESCRIBED THE ACHIEVEMENT AT THE PAST NINE ROUNDS AS NOT SATISFACTORY AS THERE HAD BEEN NOT MUCH PROGRESS. THE ARTICLE SAID THE PROBLEM WAS THE BRITISH SIDE WANTED TO EXTEND ITS POLITICAL POWER BEYOND 1997 AND TO HAVE A PART TO PLAY IN POST-1997 HK AFFAIRS. IT REITERATED CHINA'S FIRM STANCE ON SOVEREIGNTY, CRITICISMS OF THE 'FOUR DEMANDS' BY THE BRITISH SIDE AND THEIR REMARKS THAT THE THROUGH TRAIN WAS VERY IMPORTANT.
DEFENCE LAND
11. THE JLG EXPERT MEETING ON DEFENCE LAND WAS WELL COVERED (2.3). THE PAPERS REPORTED THE TEAM LEADERS FROM BOTH SIDES HAD INDICATED AFTER THE FIRST-DAY MEETING THAT IT HAD BEEN USEFUL AND CONSTRUCTIVE. THE CHINESE TEAM LEADER HAD DECLINED TO COMMENT ON WHETHER THE CHINESE SIDE HAD AGREED TO LET THE BRITISH SIDE CONVERT THE LAND NEAR THE PRINCE OF WALES BUILDING TO COMMERCIAL USE. CHINESE SOURCES WERE QUOTED AS SAYING THE CHINESE SIDE WERE WILLING TO TURN SOME SITES TO COMMERCIAL USE, BUT THE TWO SIDES STILL HAD DIFFERENCES OVER THE DISPOSAL OF MORE THAN ONE MILITARY SITE. IT WAS NOTED THE CHINESE SIDE ALSO WANTED THE GUN CLUB HILL BARRACKS AND STANLEY FORT IN ADDITION TO THE FIVE SITES AND DISCUSSIONS WERE
ON-GOING.
12. THE PAPER (4.9) NOTED THE CLOSING OF THE JLG EXPERT GROUP MEETINGS ON DEFENCE AND SECURITY. REPORTS QUOTED CHINESE TEAM LEADER LUO JIAHUAN AS SAYING ALTHOUGH NO AGREEMENT HAD BEEN REACHED GOOD PROGRESS HAD BEEN MADE. BRITISH TEAM LEADER ALAN PAUL WAS ALSO QUOTED AS SAYING GOOD PROGRESS HAD BEEN MADE AND THEIR OBJECTIVE WAS TO SECURE THE RELEASE OF AS MANY SITES AS POSSIBLE FOR HK'S SOCIAL AND ECONOMIC DEVELOPMENT, WHILE CATERING FOR THE REQUIREMENTS OF THE FUTURE CHINESE GARRISION.
13. QUOTING BRITISH SOURCES, THE HK ECONOMIC JOURNAL SAID (4.9) THE TWO SIDES WERE NEARING THE REACHING OF A CONSENSUS ON THE MILITARY SITES AS THEY NOW ONLY HAD DIFFERENCES OVER THE USE OF THE PIECE OF
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