CONFIDENTIAL
014513
MDHIAN 8618
IT. IT WAS THEREFORE APPROPRIATE TO INTRODUCE A CULTURAL AGREEMENT WHICH WAS LEGALLY BINDING. PIGOTT ADDED THAT AS FAR AS THE ENTRUSTMENT TO SIGN SUCH A LEGALLY BINDING AGREEMENT WAS CONCERNED, IT CONFERRED POWER ON HONG KONG IN A WAY WHICH MIRRORED THE ARRANGEMENTS SET OUT IN SECTION 9 OF ANNEX 1 TO THE JD.
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6. WANG SAID THAT THE PRESENT AGREEMENT HAD SET A PRECEDENT FOR FUTURE AGREEMENTS WHICH COULD BE LONGER LASTING. ONE COULD NOT (NOT) THEREFORE RULE OUT THE POSSIBILITY THAT THE CURRENT AGREEMENT WOULD HAVE EFFECT BEYOND 1997. WANG COULD NOT (NOT) AGREE, THEREFORE, THAT THIS ONE YEAR CULTURAL AGREEMENT WAS AS SIMPLE A MATTER AS WE HAD DESCRIBED IT. AS TO THE ENTRUSTMENT, SEEMED FROM PIGOTT'S COMMENTS THAT THIS ALSO TOUCHED ON THE JD. SPEAKING PERSONALLY, WANG FELT THAT THE BRITISH SIDE SHOULD HAVE INFORMED THE CHINESE SIDE OF THIS AGREEMENT BEFORE IT HAD REACHED CONCLUSION. THE FACT THAT WE HAD NOT DONE SO MIGHT CAUSE THE CHINESE SIDE DIFFICULTIES. HE ADDED THAT ALL OF THE ABOVE WERE HIS PERSONAL COMMENTS. HE WOULD REPORT AND RESPOND FORMALLY IN DUE COURSE. HE ALSO ASKED FOR A COPY OF THE TEXT OF THE CULTURAL AGREEMENT.
7. PIGOTT UNDERTOOK TO REPORT WANG'S COMMENTS. SPEAKING PERSONALLY,
HE COULD NOT AGREE THAT THE CULTURAL AGREEMENT WAS MORE COMPLEX THAN WE HAD DESCRIBED IT: IT WAS A ONE-YEAR AGREEMENT WHICH, IN TERMS OF THE FINANCIAL ARRANGEMENTS INVOLVED, WOULD BE COMPLETELY EXECUTED WITHIN THE NEXT FOUR MONTHS. AS TO THE ENTRUSTMENT, IT WAS INTENDED TO REFLECT PROVISIONS IN THE JD BUT THAT WAS ITS ONLY CONNECTION: THIS CULTURAL AGREEMENT IN ITSELF DID NOT TOUCH ON THE JD. HE NOTED WANG'S COMMENTS THAT THE ISSUE MIGHT CAUSE DIFFICULTY. HE HOPED THAT IT WOULD NOT WE CERTAINLY BELIEVED THAT IT SHOULD NOT. HE NOTED THE REQUEST FOR A COPY OF THE TEXT AND UNDERTOOK TO OBTAIN ONE.
COMMENT
8. WANG WAS ON HIS USUAL FORM. IT IS DIFFICULT TO KNOW HOW MUCH IMPORTANCE TO ATTACH TO HIS COMMENTS, WHICH WERE A PRELIMINARY REACTION TO A NEW ISSUE. WHEN WE RECEIVE THE CHINESE SIDE'S FORMAL RESPONSE, WE SHALL BE IN A BETTER POSITION TO JUDGE HOW SERIOUSLY THEY MIGHT CONSIDER THAT THE CULTURAL AGREEMENT IS AN ISSUE ON WHICH WE SHOULD HAVE CONSULTED THEM EARLIER AND TO WHAT EXTENT THEY SEE IT AS HAVING REPERCUSSIONS BEYOND 1997 THAT WILL BE THE TIME AT WHICH TO PUT STRONGER ARGUMENTS TO REFUTE SUCH A CASE.
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9. WANG AT LEAST DID NOT (NOT) ASK US TO DELAY THE EXCHANGE OF NOTES BRINGING THE AGREEMENT INTO EFFECT, OR SUGGEST THAT HE MIGHT WISH TO
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