RESTRICTED

28

170536

MOLIAN 7844

HKC 012/4.

RESTRICTED

FM PEKING

TO PRIORITY FCO

TELNO 543

OF 200906Z APRIL 93

INFO PRIORITY HONG KONG, UKREP JLG HONG KONG, BTC HONG KONG INFO ROUTINE DTI INTRA, PARIS, UKREP BRUSSELS

DTI FOR OT2/2D AND PEP 1C

UK/CHINA TRADE: LORD PRIOR'S MEETING WITH LI PENG, 19 APRIL

SUMMARY

1

·

LI PENG HELD A FRIENDLY MEETING WITH LORD PRIOR. THERE WAS NO DIRECT REFERENCE TO HONG KONG. BUT LI APPEARED TO IMPLY THAT THE UK MIGHT FACE THE SAME DISCRIMINATION AS FRANCE OVER THE CANTON METRO.

DETAIL

2.

LORD PRIOR MET LI PENG YESTERDAY AFTERNOON AT ZHONGNANHAI, AND LATER GAVE DETAILS TO HMA. THE MEETING WAS ATTENDED BY LORD PRIOR, LIPPITT OF GEC, AND MARK WONG OF MARK WONG ASSOCIATES. LI PENG WAS ACCOMPANIED BY WEI MINGYI, THE NEW CHAIRMAN OF CITIC.

3.

THE ATMOSPHERE OF THE MEETING WAS APPARENTLY FRIENDLY. MOST OF THE TIME WAS SPENT DISCUSSING GEC'S POWER PROJECTS IN CHINA. THE CANTON METRO PROJECT WAS ALSO DISCUSSED. LORD PRIOR COMMENTED THAT LI APPEARED COOLER ON THIS THAN HE MIGHT HAVE BEEN. LI SAID THAT THE FRENCH HAD WORKED HARD ON THE PROJECT, BUT WERE NOW OUT OF IT. THIS MEANT THAT THE CHINESE COULD NOT ALTOGETHER IGNORE ''SERIOUS PROBLEMS'' (YANZHONG WENTI). LORD PRIOR UNDERSTOOD THIS TO BE AN IMPLICIT REFERENCE TO THE DISPUTE OVER HONG KONG.

4"

LI PENG APPARENTLY ALSO MADE REFERENCE TO THE NEW FRENCH GOVERNMENT. HE SAID THAT HE DID NOT YET KNOW WHAT THE NEW GOVERNMENT'S ATTITUDE TOWARDS CHINA WOULD BE.

5. AT THE END OF THE MEETING, LORD PRIOR TOLD LI THAT HE HOPED THINGS COULD BE KEPT AS QUIET AS POSSIBLE'. LI RESPONDED BY MAKING A GESTURE WHICH LORD PRIOR INTERPRETED AS ENCOURAGING HIM ALONG THIS PATH.

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