*
UNCLASSIFIED
151440
MDLIAN 8597
THE ONE-DAY AIRPORT COMMITTEE MEETING. MANY REPORTS NOTED THAT NO AGREEMENT WAS REACHED AND NO DATE WAS FIXED FOR THE NEXT ROUND. SPEAKING TO REPORTERS AFTER THE MEETING, GUO FENGMIN OF THE CHINESE TEAM SAID DISCUSSIONS HAD BEEN HELD IN ACCORDANCE WITH THE MOU AND BOTH SIDES AGREED THAT DISCUSSIONS WOULD CONTINUE. ANTHONY GALSWORTHY OF THE BRITISH TEAM SAID IT WAS A GOOD START. THE BRITISH SIDE HAD RAISED A NUMBER OF SUGGESTIONS AND THE BALL WAS NOW IN THE CHINESE COURT.
19. PAPERS QUOTED (6.6) ZHANG JUNSHENG AS SAYING ALTHOUGH THE BRITISH SIDE HAD TABLED A NEW FINANCIAL PROPOSAL, THE BALL WAS STILL IN THE BRITISH COURT. THE IMPORTANT THING WAS TO ABIDE BY THE MOU. THE PRESS ALSO QUOTED EXCO MEMBER EDWARD CHEN AS SAYING THAT THE TWO SIDES HELD VERY DIFFERENT VIEWS ON THE INTERPRETATION OF THE BORROWING PROVISION IN THE AIRPORT MOU. WHILE THE BRITISH MAINTAINED THAT IT SHOULD ONLY APPLY TO GOVERNMENT LOANS AND SHOULD NOT INCLUDE THOSE INCURRED BY THE PAA AND THE MTRC, THE CHINESE HELD A DIFFERENT VIEW.
20. RETURNING FROM A VISIT TO PEKING, A DELEGATION OF THE HK CONSERVANCY ASSOCIATION QUOTED (7.6) CHEN ZOU'ER OF HKMAO AS SAYING THAT THE LEGISLATION ON THE SETTING UP OF THE AIRPORT AUTHORITY HAD TO BE DISCUSSED WITH THE CHINESE SIDE. IT WAS NOTED THAT THE ITEMS TO BE DISCUSSED SHOULD COVER THE AA'S RESPONSIBILITIES, ITS POWER AND THE APPOINTMENT OF MEMBERS. MR CHEN TOLD THE GROUP THAT THE CHINESE SIDE HAD NOT RECEIVED ANY INFORMATION SO FAR.
PATTEN
YYYY
ΜΑΙΝ
79
.HK COMMERCIAL GENERAL
HKD
PUSD
ECONOMIC ADVISERS
ERD
FED
JOINT DIRECTORATE
LEGAL ADVISERS//MS BROOKS
DISTRIBUTION
93
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PS
PS/MR GOODLAD
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