China Internal
CONFIDENTIAL
You confirmed to the Prime Minister that Hu Yaobang's
resignation did not reflect change of policies. But will
there be change of leadership at or after Autumn Party
Congress? Has economic reform been slowed down following
Hu's resignation?
Hong Kong
Implementation of Joint Declaration on Hong Kong
proceeding well. Both sides fully committed to making it
work, and acting prudently and cautiously to this end.
Certain that good progress already achieved in Joint
Liaison Group will be continued at next month's meeting.
"Way Forward"
HMG keen to build on existing excellent relations.
How can this be best done? Suggest both sides work for closer bilateral links, and further cooperation on international issues (eg. Iran/Iraq). Suggest intensify
governmental and non-governmental exchanges at all
levels.
International
Iran/Iraq
-
Deeply concerned about continuation of conflict, in
particular attacks on Gulf shipping.
Understand PM
FC2ABX
CONFIDENTIAL
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