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THURSDAY, FEBRUARY 24, 1994

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TURNING то THE HONOURABLE MEMBER'S QUESTION. I DO THINK ONE NEEDS TO,

IF I MAY SAY SO, STRIKE A BALANCE. I THINK THERE IS A DIFFERENCE BETWEEN ON THE ONE HAND MAKING AVAILABLE EVERY SINGLE DOCUMENT THAT'S BEEN THE BASIS FOR CONFIDENTIAL DIPLOMATIC EXCHANGES, AND ON THE OTHER HAND TRYING TO GIVE AS CLEAR AND ACCURATE AN ACCOUNT OF WHAT HAS HAPPENED AS POSSIBLE. I DON'T THINK THE FIRST WOULD MAKE VERY MUCH SENSE. I DO THINK THAT THE SECOND IS WHOLLY DESIRABLE. AS FOR THE MOMENT AT WHICH, IN THE HONOURABLE MEMBER'S OPINION, THE TALKS SUDDENLY HOTTED UP AND GOT INTERESTING, I THINK HE WILL FIND THAT THE FIRST 14 ROUNDS WERE QUITE INTERESTING, NOT LEAST THOSE ROUNDS AT WHICH NOTHING MUCH WENT ROUND AT ALL. THAT GIVES ONE SOME IDEA OF WHAT WAS HAPPENING. AS TO THE 15TH, 16TH AND 17TH ROUNDS, I REPEAT AGAIN, AND IT IS A POINT WHICH IS SPELLED OUT IN DETAIL IN THE WHITE PAPER, WHEN I WENT BACK TO LONDON FOR A CABINET COMMITTEE MEETING LAST OCTOBER AFTER THE 15TH ROUND, I ADVISED THE CABINET THAT IN MY VIEW A FIRST STAGE DEAL WAS PROBABLE AND I ADVISED THEM THAT THE TERMS OF IT WOULD BE ACCEPTABLE. I WAS THEREFORE AS DISAPPOINTED AS OTHERS WHEN AT THE 16TH ROUND CHINESE OFFICIALS MOVED AWAY FROM THINGS THAT HAD BEEN SAID IN THE 15TH ROUND, AND I THINK THAT DISAPPOINTMENT SHARED MORE WIDELY AS WELL.

WAS

THE

MR MARTIN BARROW: GOVERNOR YOU MENTIONED EARLIER OTHER ISSUES ON AGENDA FOR DISCUSSION WITH CHINA, COULD YOU COMMENT ON THE GOVERNMENT STRATEGY FOR DISCUSSING ECONOMIC ISSUES SUCH AS THE AIRPORT.

AND

ARE

THE GOVERNOR: YES, OUR STRATEGY IS TO PRESS AS COURTEOUSLY CONSTRUCTIVELY FOR A DIALOGUE ON THOSE MATTERS AS POSSIBLE. THERE DISCUSSIONS GOING ON THIS WEEK AS I THINK THE COUNCIL KNOWS ON THE DIFFICULT BUT IMPORTANT ISSUE OF THE FUTURE OF DEFENCE LANDS. THAT HAS AN ECONOMIC ASPECT AS WELL AS OTHER ASPECTS AS WELL. WE WOULD LIKE TO HAVE THE OPPORTUNITY OF DISCUSSING WITH CHINESE OFFICIALS SOONER RATHER THAN LATER THE PROPOSALS THAT WE'VE PUT THE FOURTH SET OF PROPOSALS THAT WE'VE PUT ON FINANCING THE AIRPORT. THERE ARE A LOT OF OTHER PROPOSALS TOUCHING ON HONG KONG'S ECONOMIC WELLBEING THAT WE WOULD LIKE TO CARRY FORWARD. I WAS ENCOURAGED BY WHAT THE CHINESE PRIME MINISTER SAID LAST DECEMBER ABOUT CHINESE OFFICIALS BEING DETERMINED NOT TO LET ANY POLITICAL ARGUMENT AFFECT THE LIVELIHOOD OF HONG KONG AND TO CONTINUE TO WORK FOR THE INTERESTS OF HONG KONG. SO I HOPE THAT WE CAN SEE THAT, SEE A DIALOGUE DEVELOP RATHER MORE CONSTRUCTIVELY THAN PERHAPS HAS HAPPENED, NOT JUST FOR THE LAST EIGHTEEN MONTHS BUT FOR THE LAST THREE YEARS. IN THE MEANTIME, WE CONTINUR WITH THE SUPPORT FROM TIME TO TIME WHEN EXPENDITURE DECISIONS IS NECESSARY; WE CONTINUE TO DO WHAT WE BELIEVE IS IN THE LONG TERM INTERESTS OF HONG KONG. THAT HAS BEEN, SO FAR I AM PLEASED TO SAY, A BENEFICIAL PROCESS AND THE LATEST ROUND OF THOSE BENEFITS WILL BE MADE PUBLIC WHEN THE FINANCIAL SECRETARY ANNOUNCES HIS BUDGET NEXT WEEK.

/MS EMILY

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