UNCLASSIFIED

053127

2

MDLIAN

OF THORNY PROBLEMS LEFT BEHIND BY THE BRITISH FOLLOWING THEIR WITHDRAWAL FROM FORMER COLONIES, INCLUDING PROBLEMS IN INDIA, PAKISTAN, KASHMIR AND THE BALKANS. IT WAS REITERATED THAT THE CHINESE SIDE SHOULD REMAIN HIGHLY VIGILANT TO PREVENT RECURRENCE OF THE SITUATION CAUSED BY BRITISH WITHDRAWAL.

5.

ON ECONOMIC ISSUES, THE BRITISH SIDE HAD MAINLY BEEN PRESSURISING CHINA WITH THE NEW AIRPORT. IT WAS POINTED OUT THAT IF THE NEW AIRPORT PROJECT FELL THROUGH, THE CONTINGENCY PLAN OF THE CENTRAL AUTHORITIES WOULD BE TO USE THE NEW HUANGTIAN AIRPORT IN SHENZHEN. A THIRD RUNWAY WOULD BE BUILT THERE AND TWO OF THE THREE RUNWAYS WOULD BE RESERVED FOR EXCLUSIVE USE BY HONG KONG. A LIGHT RAIL LINK WOULD ALSO BE BUILT TO CONNECT HUANGTIAN WITH THE BORDER CROSSING POINT AT HUANGGANG.

6.

THE DOCUMENT POINTED OUT THAT CHINA WOULD NOT LIKE TO SEE THE BREAKING UP OF THE AIRPORT TALKS, AND HAD TAKEN BRITISH INTERESTS WELL INTO ACCOUNT. THE DOCUMENT LISTED A NUMBER OF FIGURES AND EXAMPLES TO HOW THAT MANY CONTRACTS HAD BEEN AWARDED TO BRITISH FIRMS AND HOW HKG HAD GIVEN FAVOURABLE TREATMENT TO

THEM.

THE DOCUMENT REITERATED THAT CHINESE POSITION ON THE NEW AIRPORT REMAINED UNCHANGED. THE CHINESE PRINCIPLES WERE:

7.

(I) THERE WAS NO QUESTION OF USING THE SARG LAND FUND.

(II)

THE BOTTOMLINE FOR RESERVES OF HK DOLLARS 75 BILLION

(SIC) TO BE LEFT TO THE SARG AS STIPULATED IN THE MOU

SHOULD NOT BE BREACHED.

(III) EXPENDITURE ON THE NEW AIRPORT SHOULD BE SUBJECT TO AN

UPPER CEILING.

FORD

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