CONFIDENTIAL
3+ 8
044564
MDHIAN 5727
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE PEKING
TELNO 121
OF 27104OZ DECEMBER 90
AND TO IMMEDIATE F C O
HK C 182 12
16
09 JAN 1991
INFO PRIORITY UKREP JLG HONG KONG
341
YOUR TELNO 101: PADS: THE WAY FORWARD
TOP COPY Q DIST?
Pa
1.
THE CHINESE TEAM IS A GREAT IMPROVEMENT ON THAT WHICH TOOK PART IN THE FIRST ROUND OF EXPERT TALKS. THE ONLY DISAPPOINTMENT
IS THAT LUO JIAHUAN WILL CONTINUE TO ACT AS TEAM LEADER.
2. IN THE CIRCUMSTANCES, I PROPOSE THAT OUR TEAM SHOULD BE HEADED BY HAMISH MCLEOD, THE SECRETARY FOR THE TREASURY, AND SHOULD INCLUDE THE PA, THE GOVERNMENT ECONOMIST (K.Y. TANG), DARWIN CHEN (WHO CAN COVER THE LAND COMMISSION ANGLE) AND DENISE YUE (FINANCIAL BRANCH). WE CONSIDERED ALSO SENDING JOSEPH YAM (DEPUTY SECRETARY FOR MONETARY AFFAIRS) TO COVER THE EXCHANGE FUND ANGLE, BUT DECIDED ON REFLECTION THAT IT WOULD BE MORE SENSIBLE NOT TO GIVE THE CHINESE ANY ENCOURAGEMENT TO GO INTO DETAILS OF THE EXCHANGE FUND IN THIS FORUM.
3. ON THIS BASIS, THE FS WOULD NOT BE PART OF THE EXPERT TEAM. BUT I SHOULD STILL LIKE HIM TO BE IN PEKING AT ROUGHLY THE SAME TIME SO THAT HE CAN PICK UP POINTS RAISED AT THE EXPERT LEVEL TALKS AND DEAL WITH THEM, AS APPROPRIATE, AT A HIGHER LEVEL. CONSEQUENTLY I PROPOSE THAT HE SHOULD TRAVEL TO PEKING SEPARATELY, PERHAPS A DAY OR TWO AFTER THE TEAM. THE INTENTION WOULD BE THAT HE WOULD HOLD A SEPARATE MEETING WITH LU PING, IN WHICH, IF NECESSARY, EXCHANGE FUND MATTERS COULD BE COVERED. DEPENDING ON WHAT THE CHINESE HAVE IN MIND, AND IN PARTICULAR IF LU PING IS TO BE INVOLVED IN IT, THE FS MIGHT ALSO TAKE PART IN THE RESTRICTED MEETING ON THE FOURTH DAY.
4.
I SEE SOME MERIT IN ANNOUNCING THIS ROUND AS SOON AS POSSIBLE. A SINGLE PRESS RELEASE WITH DATES AND THE COMPOSITION OF THE TWO TEAMS SHOULD SUFFICE. IF THE CHINESE ARE CONTENT, I SUGGEST WE ISSUE IT ON 31 DECEMBER.
WILSON
1
PAGE CONFIDENTIAL
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