GOVERNOR
UNCLASSIFIED
4423
MDLIA
7941
12. THE GOVERNOR WOULD VISIT PEKING FROM JANUARY 10 TO 12, THE MEDIA (31.12) REPORTED. HE WOULD BE HAVING DISCUSSIONS WITH SENIOR
CHINESE OFFICIALS DEALING WITH HONG KONG AFFAIRS ON A RANGE OF CURRENT ISSUES. THE HK STANDARD (3.1) REPORTED THAT XU JIATUN, HAD RETURNED FROM PEKING AFTER HELPING PREPARE THE GOVERNOR'S VISIT. THE PAPER SAID THAT THIS SHOWED THAT CHINA HAD ATTACHED IMPORTANCE
TO THE GOVERNOR'S VISIT.
CHINESE LEADERS ON HONG KONG
13. LU PING SAID THAT ALTHOUGH SINO-BRITISH RELATIONS HAD EXPERIENCED SOME DIFFICULTIES IN THE LAST SIX MONTHS, HE HOPED THAT THE STRAINED RELATIONS WOULD BE TEMPORARY ONLY AND THAT BOTH SIDES WOULD RESUME CO-OPERATION VERY SOON, THE MEDIA (20.12) REPORTED. ALTHOUGH THE BASIC LAW WAS FORMULATED FOR THE PERIOD AFTER 1997, MANY THINGS BEING DONE DURING THE TRANSITION SHOULD BE IN
ACCORDANCE WITH IT.
14. JIANG ZEMIN SAID THAT THE INTERESTS OF HONG KONG AND THOSE OF CHINA WERE COMPATIBLE. HE SAID THAT POLITICAL STABILITY AND ECONOMIC PROSPERITY IN CHINA WOULD BENEFIT HONG KONG. AT THE SAME TIME, STABILITY AND PROSPERITY IN HONG KONG WOULD BE IN LINE WITH THE INTERESTS OF CHINA AND BRITAIN. ON THE PLANNING OF INFRASTRUCTURAL PROJECTS FOR HONG KONG, HE GAVE A WARNING THAT THOSE PROJECTS, WHICH WOULD INVOLVE 15 BILLION U.S. DOLLARS, SHOULD BE PLANNED ON THE UNDERSTANDING THAT HONG KONG COULD AFFORD IT. YANG SHANGKUN, SPEAKING AT A PRESS CONFERENCE IN OMAN, REITERATED THAT THERE WAS NOT CHANGE IN CHINA'S POLICY TOWARDS HONG KONG AND THAT THE TERRITORY WOULD CONTINUE TO PRACTISE CAPITALISM IN THE 50 YEARS AFTER 1997, THE MEDIA (29.12) REPORTED.
WILSON
YYYY
ΜΑΙΝ
59
.HONG KONG AGREEMENT
. (RESTRICTED)
LIMITED
DISTRIBUTION
63
NEWS D
PS/MR MAUDE
PS/LORD BRABAZON
PAGE
4
UNCLASSIFIED
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