TNAG-2210-FCO40-3170-Future-of-Hong-Kong-political-parties-1991 — Page 12

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

makes clear that this should be part of a gradual and orderly process.

Second, the question of Hong Kong's autonomy. The Prime Minister attaches great importance to the maintainance of a high degree of autonomy for Hong Kong. He made clear in Peking that the Hong Kong Special Administrative Region will enjoy a high degree of autonomy except in foreign and defence affairs, and that there was no question of the Chinese Government seeking any veto, condominium or joint administration over Hong

Kong between now and 1997.

The Joint Declaration envisaged the intensification of co-operation between Britain and China over Hong Kong during the second half of the transition. The Joint

Liason Group whose work is to be accelerated as a

result of the Prime Minister's visit to Peking is the

right forum for discussion on these issues within the

framework of the Joint Declaration.

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The Chinese Government have now given their full backing to the Airport Project and have agreed to look positively at the question of franchises and necessary borrowing by the Hong Kong Government. Given these firm assurances of Chinese support, the Hong Kong Government considered that it would be reasonable to give the Chinese some assurances about the Hong Kong Government's finances in 1997. The signing of the Memorandum of

Understanding, and the important boost to confidence in

Hong Kong which it has provided, were widely welcomed when the Prime Minister was in Hong Kong.

You say that the Chinese have objected to the Hong Kong Government's choice of members for the Airport

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