UNCLASSIFIED
FM HONG KONG
TO PRIORITY FCO
TELNO 85
UNCLASSIFIED
02/3
RECEIVED IN REGISTRY
2 0 JAN 1993
DESK OFFICER
INDEX
PA
REGISTRY
Action Taken
OF 190951Z JANUARY 93
INFO PRIORITY PEKING, UKREP JEG HONG KONG
11
065527
MDLIAN 8104
OUR TELNO 74: REMARKS MADE BY WANG QIREN ON CONTRACTS: PRESS REPORTS
1. A DEPUTY DIRECTOR OF THE STATE COUNCIL'S HKMAO, WANG QIREN, RESTATED CHINESE POSITION ON CONTRACTS ETC. STRADDLING 1997 WHEN RECEIVING AN AMCHAM DELEGATION YESTERDAY (18 JAN). MOST REPORTS PLAYED UP WANG'S REMARKS THAT BOTH THE JD AND BL STIPULATED THAT CHINESE AGREEMENT MUST FIRST BE SOUGHT ON ALL CONTRACTS, LEASES AND AGREEMENTS MADE BY THE GOVERNMENT OR THEY WOULD NOT BE RECOGNISED BY THE SARG. ACCORDING TO WEN WEI PO, WANG REFERRED TO THE HKMAO STATEMENT LAST DECEMBER (OUR TELNO 2793), WHICH HE SAID WAS TARGETED AT GOVERNMENT CONTRACTS, NOT CIVILIAN ONES.
2. WANG SAID THAT THE CHINESE SIDE WOULD SOON TAKE FOLLOW-UP ACTION IN EXAMINING THE ABOVE-MENTIONED DOCUMENTS. THEY WOULD TAKE A POSITIVE ATTITUDE TOWARDS THOSE MAJOR CONTRACTS FOR WHICH THE SARG WOULD BE LIABLE: WHILE THE MAJORITY OF GENERAL CONTRACTS WOULD BE DEALT WITH AT ONE GO.
3. HE SAID THE CHINESE SIDE WOULD NOT INTERFERE WITH NON- GOVERNMENT AGREEMENTS, CONTRACTS AND LEASES IN HONG KONG. FOREIGN INVESTMENT WOULD BE WELCOME AND THEIR INTERESTS WOULD BE SAFEGUARDED IF FOREIGN INVESTORS ABIDED BY THE RULES AND REGULATIONS.
4. ON THE CONSTITUTIONAL FRONT, WANG REPEATED THAT IT WAS A MATTER OF WHETHER PROMISES WERE HONOURED, ADDING THAT IT WOULD NOT BE COURTEOUS IF CHINESE DID NOT RECIPROCATE' IN THE CURRENT ROW (I.E. SINCE WE HAD INITIATED THE DISPUTE, THE CHINESE HAD TO TAKE REACTIVE MEASURES).
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