TMZ 01/6
CONFIDENTIAL
os Saudital
洗し、
w whitney
دید بار
Ans Homes - Joul
grateful for auth
pm.ZHU/DEMOC
133
5/xi-
The majority of Zhu's meeting with the Prime Minister will be spent on Hong Kong affairs, particularly the Governor's proposals on constitutional development. Zhu will be briefed to raise the matter himself. The Chinese wish to drive a wedge between the Prime Minister and the Governor. The Prime Minister may therefore for tactical reasons wish to raise the subject himself early in the meeting. The Prime Minister may wish to make the following points:
-Wish to make it clear from the outset that there has ben no change in the UK's policy towards China and Hong Kong. We remain firmly committed to the full implementation of the Joint Declaration.
-Mr Patten, the Governor of Hong Kong, has a very important task in the next five years. He deserves the full support of the British and Chinese Governments. He certainly has my support. I believe the proposals in his Legco Speech are fully consistent with the spirit and letter of the basic law.
- His proposals are however just that - proposals. Hope that if the Chinese side see any way to improve them in a manner consistent with the Joint Declaration and the Basic Law then these are put forward as soon as possible. In any event any arrangements for the 1995 elections will need to be agreed by the Legislative Council in Hong Kong. Not true to say that the Governor was acting unilaterally without seeking the views of the Chinese side.
Disappointed that no real progress has been made on the question of Airport Financing despite The MOU I signed in September last year or the discussion I held with Premier Li Peng in Rio. Hope that this problem will soon be resolved in accordance with the MOU.
- One issue we must both look at very carefully is MFN status for China. No doubt when Governor Clinton becomes President he will wish to review the situation very carefully. We will make make very clear to the US Government the implications for Hong Kong. But if Hong Kong is suffering economically as a result of the Chinese reaction to the Governor's proposals then our arguments will clearly carry less weight in Washington.
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I believe that improved cooperation between our two governments over the question is in the interests of both our countries and of Hong Kong itself therefore hope that the Megaphone Diplomacy will abate soon and serious negotiations
can resume.
CONFIDENTIAL
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