TNAG-1634-FCO40-2250-Visits-by-Chinese-officials-to-Hong-Kong-1987 — Page 26

CONFIDENTIAL

63479

AND GRADUAL APPROACH IN WORKING TOWARDS A SMOOTH TRANSITION

AND THE MAINTENANCE OF STABILITY AND PROSPERITY. BOTH AGREED

THAT THE PATTERN OF CLOSE CONSULTATIONS ESTABLISHED BETWEEN

HMG AND THE PRCG AT VARIOUS LEVELS ON THIS AND OTHER HONG

KONG ISSUES SHOULD BE MAINTAINED.

C)

THE GOVERNOR AND WU REVIEWED THE PROGRESS OF JLG DISCUSSIONS

SO FAR (JLG VII MEETS IN LONDON 7-10 JULY) AND THE PRESENT

STATE OF CONFIDENCE IN HONG KONG WHICH, WHILE GOOD,

INEVITABLY REMAINS FRAGILE. THEY ALSO REVIEWED THE GROWTH OF

ECONOMIC LINKS BETWEEN HONG KONG AND THE SHENZHEN SPECIAL

ECONOMIC ZONE.

D) THE ATMOSPHERE OF THE MEETING WAS RELAXED AND FRIENDLY

THROUGHOUT.

E)

THE HONG KONG PRESS PORTRAYED IT AS A CRISIS MEETING IN THE

WAKE OF PRESS REPORTS OF REMARKS BY A SENIOR CHINESE

OFFICIAL ABOUT DIRECT ELECTIONS (A SUBSEQUENT CHINESE

QUALIFICATION MADE IT CLEAR THAT THE REMARKS IN QUESTION DID

NOT (NOT) BREAK ANY NEW GROUND). THERE WAS NO CRISIS.

MEETING WAS PLANNED WELL BEFORE THE PRESS STARTED DRAMATISING

THINGS. WU MADE NO (NO) NEW POINTS OF SUBSTANCE TO THE

GOVERNOR.

THE

HOWE

OCMIAN 3479

HONG KONG AGREEMENT : RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH DEPT.(FE)

DEP/HD PUSD

HO INAD

PS/LORD GLENARTHUR

PS/MR EGGAR

MR MCLAREN

MR GILLMORE

COPIES TO:

MR FIFOOT, LEGAL ADVISERS

CONFIDENTIAL

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