CONFIDENTIAL
02111
(110)
045330
MDHIAN 8280
CONFIDENTIAL
FM PEKING
TO IMMEDIATE FCO
TELNO 963
OF 090916Z JULY 93
AMENDED DISTRIBUT I ON
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INFO IMMEDIATE HONG KONG, WASHINGTON QDA
INFO IMMEDIATE TOKYO FOR PRIME MINISTER'S PARTY, ASEAN POSTS INFO IMMEDIATE MOSCOW, CANBERRA
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FROM PRIVATE SECRETARY
FOREIGN SECRETARY'S VISIT TO PEKING, 9 JULY: CALL ON PRESIDENT JIANG ZEMIN
SUMMARY
1.
JIANG ZEMIN ENDORSES ACCELERATION OF TALKS ON HONG KONG. GIVES RAMBLING, ANECDOTAL ACCOUNT OF THE DOMESTIC SITUATION IN CHINA. PLACES ECONOMIC PROBLEMS IN CONTEXT OF MILD OVERHEATING, PARTICULARLY IN THE FINANCIAL SECTOR. OPTIMISTIC ABOUT CONTINUED GROWTH OF UK/CHINA TRADE.
DETAIL
2.
THE FOREIGN SECRETARY PAID AN HOUR LONG CALL ON PRESIDENT JIANG ZEMIN ON 9 JULY. THE MEETING TOOK PLACE IN A NEWLY RENOVATED PART OF THE ZHONGNANHAI. JIANG ZEMIN WAS IN CUSTOMARY FORM, WAXING AT LENGTH IN RESPONSE TO THE FOREIGN SECRETARY'S QUESTIONS.
HONG KONG
3.
THE FOREIGN SECRETARY SAID HE HOPED HIS TALKS WITH QIAN TODAY HAD EMPHASISED THE NEED TO MOVE FORWARD ON THE NEGOTIATIONS AND IN THE JOINT LIAISON GROUP AT A FASTER RHYTHM. A CLEAR AGENDA HAD NOW BEEN SET OUT WHICH WOULD ALLOW FOR THE SMOOTH TRANSITION IN 1997 WHICH BOTH SIDES WANTED. JIANG AGREED THAT THE VISIT WOULD BE CONDUCIVE TO SETTLING THE OUTSTANDING ISSUES. HE REITERATED THE CHINESE COMMITMENT TO ONE COUNTRY-TWO SYSTEMS, HONG KONG PEOPLE TO RUN HONG KONG AFFAIRS AND FOR HONG KONG TO MAINTAIN ITS CAPITALIST SYSTEM. CHINA SHARED BRITAIN'S AIM OF STABILITY AND PROSPERITY FOR HONG KONG. HE WAS CONFIDENT THE ISSUES WOULD BE RESOLVED AS LONG AS BOTH SIDES SHOWED STRATEGIC VISION.
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