TNAG-2142-FCO40-3061-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 89

CONFIDENTIAL

HKB020/3.

-9 APR 1990

AMENDED DISTRIBUTION 28/3/90

Potion To

CONFIDENTIAL

FM PEKING

TO IMMEDIATE FCO

TELNO 459

OF 261017Z MARCH 90

INFO IMMEDIATE HONG KONG, B T C HONG KONG

131240 MDHIAN 6230

MA

HONG KONG PERSONAL FOR GOVERNOR AND POLITICAL ADVISER.

BTC HONG KONG PERSONAL FOR PETER HEAP.

MY TELNO 450. LORD YOUNG'S VISIT: MEETING WITH LI RUIHUAN.

SUMMARY.

1. LORD YOUNG HAD A MEETING WITH LI RUIHUAN, FORMER MAYOR OF TIANJIN AND NOW A MEMBER OF THE SIX-MAN STANDING COMMITTEE OF THE POLITICAL BUREAU, FOR OVER AN HOUR ON 26 MARCH. OPPORTUNITY TAKEN FOR THOROUGH DISCUSSION OF TWO MAIN AREAS RELATING TO HONG KONG: FIRST, THE UK NATIONALITY PACKAGE SECONDLY, THE PORT AND AIRPORT DEVELOPMENT STRATEGY. LI GAVE A FAIR HEARING, SAYING THAT HE UNDERSTOOD THE POINTS LORD YOUNG WAS MAKING, BUT STILL EXPRESSED RESERVATION ON THE CHINESE SIDE ABOUT THE SCALE OF THE PADS PROJECT AND THE LEVEL OF DEST WHICH CHINA MIGHT BE BURDENED WITH AFTER 1997.

DETAIL.

2. MEETING TOOK PLACE IN ZHONG NANHAI (HALL 202) IN FRIENDLY ATMOSPHERE. VICE-PRESIDENT WANG XIAODA OF CPIFA AND ASSISTANT MINISTER JIANG ENZHU WERE PRESENT.

3. AFTER OPENING COURTESIES, WITH REFERENCES TO LORD YOUNG'S FREQUENT VISITS TO CHINA AND LI'S VISIT TO BRITAIN IN 1984, LI COMMENTED BRIEFLY ON THE EFFECT THAT THE EVENTS OF LAST JUNE HAD ON RELATIONS WITH WESTERN EUROPEAN COUNTRIES. HOWEVER, THE UK AND CHINA WERE NOW WORKING TOGETHER FOR THE SETTLEMENT OF THE HONG KONG QUESTION. IN A GENERALLY TROUBLED WORLD, IT WAS CEVIOUS THAT LORD YOUNG WAS WORKING ACTIVELY FOR A RESTORATION OF GOOD RELATIONS BETWEEN CHINA AND BRITAIN. LAST YEAR WHEN THERE HAD BEEN PROBLEMS WITH STUDENTS IN CHINA, TAIWAN HAD BEEN CRITICAL ABOUT THEIR HANDLING BUT NOW THE STUDENTS WERE IN THE STREETS IN TAIWAN. IT LOOKED AS THOUGH TAIWAN WAS BETTER PREPARED WITH

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