CONFIDENTIAL
HUB. 026
026/23
RECT"
Ваз
143770 MDLIAN 8772
CONFIDENTIAL
FM PEKING
TO PRIORITY FCO
TELNO 1427
OF 16091OZ OCTOBER 90
INFO PRIORITY HONG KONG, BTC HONG KONG
TOP COPY Q DIST?
UKREP JLG HONG KONG
INFO PRIORITY ACTOR, UKREP BRUSSELS, OVERSEAS TRADE DIVISION DTI
MIPT (NOT TO ALL). LORD YOUNG'S VISIT.
CALL ON PREMIER LI PENG: SINO-BRITISH RELATIONS AND HONG KONG.
1.
LI PENG SPOKE OF THE BETTER SHAPE OF THE CHINESE ECONOMY AT
PRESENT. IN RESPONSE TO A REMARK BY LORD YOUNG ABOUT THE DEVELOPMENT OF COMMUNICATIONS BETWEEN CHINA AND HONG KONG, LI PENG SAID THAT IF THE VOLUME OF TRAFFIC CONTINUED TO GROW BOTH CHINA AND THE WEST WOULD BENEFIT. HE NOTED WITH APPROVAL THAT THE BRITISH GOVERNMENT WAS IN THE FOREFRONT OF TRYING TO
GET THE EUROPEAN COMMUNITY TO IMPROVE ITS RELATIONS WITH CHINA.
LORD YOUNG SAID THAT WE WERE WORKING HARD WITHIN THE EC TO GET
BACK TO A NORMAL PATTERN OF RELATIONS.
2.
LI PENG SAID THAT HE BELIEVED THE EUROPEAN COMMUNITY WOULD
MEET SOON TO TALK ABOUT RELATIONS WITH CHINA. HE HOPED THAT A
WISE DECISION WOULD BE REACHED. HE ASKED FOR HIS REGARDS TO BE PASSED TO MRS. THATCHER. HE ALSO HOPED THAT BRITAIN WOULD CONTINUE TO TRY AND IMPROVE ITS RELATIONSHIP WITH CHINA. THE POLITICAL SITUATION WAS STABLE, THE ECONOMY WAS DEVELOPING ALONG BETTER LINES, THE FOREIGN EXCHANGE RESERVES WERE HIGH AND INDUSTRIAL PRODUCTION HAD IMPROVED: THE SEPTEMBER FIGURES SHOWED AN INDUSTRIAL GROWTH OF 7.5 PER CENT. IN THE CIRCUMSTANCES THE BACKGROUND EXISTED FOR THE UNITED KINGDOM TO DEVELOP ITS RELATIONS FURTHER WITH CHINA AND THIS WOULD BE BENEFICIAL BOTH POLITICALLY AND ECONOMICALLY. THE PROSPECTS FOR THE FUTURE WERE GOOD.
IF THE UNITED KINGDOM COULD RESUME CONCESSIONAL LENDING TO CHINA THIS WOULD ENABLE BRITAIN TO SEND MORE EQUIPMENT FOR PROJECTS OF THE MAGNITUDE OF YUE YANG AND DAYA BAY. LORD YOUNG SPOKE OPTIMISTICALLY ABOUT THE FUTURE FOR HONG KONG AFTER 1997 AND THE LIKELY GROWTH OF TRADE BETWEEN CHINA AND BRITAIN BEYOND 1997.
LI PENG SAID THAT HE HOPED TO SEE HONG KONG PROSPEROUS AND STABLE. THE TERRITORY WAS IMPORTANT TO CHINA AND WOULD CONTINUE TO BE SO AFTER 1997. HE HOPED THAT IT WOULD MAINTAIN ITS STATUS
3.
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