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MONDAY, JULY 27, 1992

THREE SHORT IMPRESSIONS:

THE INTEGRATION OF THE ECONOMIES OF SOUTHERN CHINA AND HONG KONG HAS ADVANCED VERY FAST, IS NOW SOMETHING ALMOST EVERYBODY TALKS ABOUT. IT'S A FACT OF LIFE. IT'S GOOD NEWS FOR HONG KONG, IT'S GOOD NEWS FOR CHINA. IT SHOWS THAT CO-OPERATION WORKS TO THE BENEFIT OF ALL. IT'S BASED ON THE FREE- MARKET APPROACH IDENTIFIED WITH HONG KONG. IT SHOWS THE IMPORTANCE, INCIDENTALLY, TO HONG KONG, OF RETAINING CHINA'S MEN STATUS AND THAT IS A POINT WE CONSISTENTLY RAM HOME IN WASHINGTON.

SO YOU'VE GOT AND THIS IS THE SECOND POINT YOU'VE GOT CO-OPERATION WITHOUT FUSS, WITHOUT DRAMA, IN THE BUSINESS FIELD BETWEEN CHINA AND HONG KONG, AND WE MUST TRY TO TRANSLATE THAT SAMR SPIRIT OF CO-OPERATION WITHOUT FUSS, WITHOUT DRAMA, INTO THE DISCUSSIONS AT GOVERNMENT LEVEL. THERE'S A STRONG WISH HERE, WHICH I SHARE, то FIND, TO BUILD, A GOOD CONSTRUCTIVE RELATIONSHIP BETWEEN BRITAIN AND CHINA THROUGH THESE FINAL YEARS OF TRANSITION IN HONG KONG, AND THAT'S WHAT WE INTEND.

WE BELIEVE MERITS WE

THE MOU ON THE NEW AIRPORT, SIGNED BY THE PRIME MINISTER AND PREMIER LI PENG LAST YEAR, IS A SOUND FRAMEWORK FOR THIS: PROJECT, A PROJECT WHICH IS CRUCIAL FOR HONG KONG'S FUTURE ROLE AT THE CENTRE OF THIS REGION. FURTHER DISCUSSIONS ARE NEEDED TO RESOLVE SOME OF THE QUESTIONS OF FINANCING. WE SHALL CONTINUR TO KEEP THIS AIRPORT QUESTION, OF COURSE, SEPARATE FROM ANY OTHER MATTERS. THAT WHEN THESE REMAINING QUESTIONS ARE TACKLED ON THEIR WILL FIND A SOLUTION, SO THE AIRPORT WILL BE BUILT. THERE WAS UNCERTAINTY ABOUT THIS LAST YEAR BUT THE MEMORANDUM OF UNDERSTANDING REMOVED THAT UNCERTAINTY. THE AIRPORT WILL BE BUILT; IT'S A SHARED INTEREST OF HONG KONG, CHINA AND GREAT BRITAIN. WE NOW HAVE TO SETTLE, IN THE MEETING PLACES PROVIDED FOR THAT PURPOSE, THE QUESTIONS WHICH ARE OUTSTANDING AND WHICH HAVE BEEN SLOW TO SETTLE.

THE FINAL POINT: THE FUTURE OF HONG KONG RESTS, AS IT HAS FOR EIGHT YEARS, ON CARRYING THROUGH THE JOINT DECLARATION, THE PRACTICAL CARRYING THROUGH OF THAT DECLARATION IN THE JOINT LIAISON GROUP IS NOT ALWAYS AS QUICK AS YOU OR 1 WOULD LIKE AND WE SHALL GO ON TRYING TO SPEED IT UP, BUT THAT REMAINS THE BASIS. PRESERVING THE WAY OF LIFE WHICH IS CLEARLY DEFINED IN DECLARATION, THE WAY OF LIFE WHICH YOU KNOW AND FROM BENEFIT, IS VITAL TO THE FUTURE SUCCESS OF HONG KONG.

THE GOVERNOR:

THANK YOU VERY MUCH, FOREIGN PERHAPS WE COULD PROCEED IN OUR NORMAL DISCIPLINED FASHION I'D BE GRATEFUL FOR IS, IF YOU COULD, BEFORE ASKING YOUR GIVE US YOUR NAME AND THE ORGANISATION WHICH YOU REPRESENT, ALSO BE GRATEFUL AND SAY, WOULD ALL YOUR COLLEAGURS IN CORPS, IF YOU WOULD ASK ONE QUESTION RATHER THAN MAKR RHETORICAL CONTRIBUTION.

THE JOINT WHICH YOU

SECRETARY.

AND WHAT QUESTION,

AND I'D THE PRESS A LENGTHY

ABOUT THE HAS IT

DAISY LEE (MING PAO);

CAN YOU TELL US YOUR VALUATION SINO-BRITISH RELATIONSHIP SINCE THE SIGNING OF THE MEMORANDUM?

BEEN DETERIORATING?

/FOREIGN SECRETARY:

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