CONFIDENTIAL

065465

MDHIAN 1342

THE NUMBER TO 18. I REMEMBER, I TOLD HER ENVOY THAT THE TERM DEMOCRACY IS RELATIVE. I ALSO STATED THAT THE GOVERNOR HELD ALL

THE POWER IN HONG KONG AND THAT THIS HAD RESULTED IN GOOD

MANAGEMENT.

18. I TOLD HIM THAT DEMOCRACY SHOULD BE IN LINE WITH HISTORICAL AND ECONOMIC DEVELOPMENT. SUDDEN DEMOCRACY COULD ENDANGER SOCIAL STABILITY BUT THIS DOES NOT MEAN THAT I DO NOT WANT ANY DEMOCRACY AT ALL. IT WILL TAKE TIME. BY AGREEING TO GO FROM 10 SEATS TO 18

I HAVE ALREADY DONE MY BEST TO COMPROMISE.

19. THE SECOND ISSUE THE ENVOY WANTED TO DISCUSS WAS THE AIRPORT. I SAID THAT AS AN ENGINEER I BELIEVED A FEASIBILITY STUDY WAS NECESSARY. ALSO, AFTER 1997, WE WOULD NOT TAKE MONEY OUT OF HONG KONG BUT WE WOULD NOT SUBSIDIZE IT EITHER. I SAID WE NEED TO AVOID THE DEPLETION OF HONG KONG'S RESOURCES AND THE CREATION OF A HEAVY BURDEN FOR THE FUTURE. HONG KONG DID NEED A NEW AIRPORT AND THUS WE LATER HAD A MEMORANDUM OF UNDERSTANDING.

20. AS I SAID BEFORE, SINCE I CAME TO THE CENTRE I HAVE BEEN PAYING CLOSE ATTENTION TO THIS ISSUE. I HOPED THERE WOULD BE A

SMOOTH TRANSITION BUT THEN CAME GOVERNOR PATTEN'S PROPOSALS. ALSO, IT WAS SUGGESTED THAT THESE PROPOSALS WERE SUPPORTED BY A LARGE

MAJORITY OF HONG KONG.

-

21. IN CHINA WE HAVE A SAYING THAT ''AS LONG AS WE ARE SINCERE THERE

IS NOTHING THAT CANNOT BE DONE'' THE THIRD ROUND OF TALKS HAVE

PROMISE. WHAT I WANT TO SAY IS THAT WE ARE SINCERE IN DEALING WITH

THIS ISSUE. I DO NOT THINK CHINA WILL CREATE ANY DIFFICULTIES OUT

OF THE CLEAR BLUE SKY.

22. WE SHOULD PUSH AHEAD ON THE BASIS OF THE BASIC LAW, THE JOINT DECLARATION, AND THE UNDERSTANDINGS WHICH HAVE BEEN REACHED. I FIRMLY BELIEVE THAT IF BOTH SIDES HAVE THE PROSPERITY AND STABILITY OF HONG KONG AT HEART WE WILL REACH A SOLUTION. I AM SURE WE WILL

REACH A SOLUTION. I AM OPTIMISTIC.

23.

THE PRESIDENT ASKED LORD CALLAGHAN TO CONVEY HIS GREETINGS TO

MR MAJOR.

24-

THE PRESIDENT THEN WENT ON TO MAKE SOME GENERAL BUT RELATED

COMMENTS:

25.

CHINA NOW HAS MORE THAN 1 1 BILLION PEOPLE. I HAVE MY OWN

PAGE

CONFIDENTIAL

3

Share This Page