CONFIDENTIAL
SECRETARY OF STATE'S VISIT TO CHINA AND HONG KONG:
SPEAKING POINTS
(Not to be handed over)
Relations have improved over the last year.
Foreign
Secretary's visit to Peking earlier this month provided a useful opportunity to discuss important issues relating to
the 1997 transition with the Chinese Government.
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Chinese agreed in principle to improve work of Joint
Liaison Group.
Assured us they did not want to interfere in
Hong Kong's administration. Made welcome statements that their objective was stability and prosperity and that they
sought no veto.
-
Hope to continue to improve relations. But have made clear to Chinese that in return we expect more productive
cooperation over Hong Kong.
Unable to reach breakthrough on Hong Kong's airport plans during Foreign Secretary's visit.
The Peking talks were adjourned on 13 April. Achieved some narrowing of the two sides' positions. But important
issues remain to be resolved.
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Both sides need to take stock before resuming talks.
Talks adjourned amicably to give both sides a pause for
reflection.
- Chinese remain concerned about the cost of the airport and
about the state of Hong Kong's fiscal reserves in 1997.
DUNAFE/1
CC
CONFIDENTIAL
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