TNAG-2243-FCO40-3224-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 102

CONFIDENTIAL

FM FCO

TO IMMEDIATE TOKYO

TELNO 339

OF 211055Z MAY 91

CONFIDENTIAL

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Asfix

052641

MDHOAN 3972

2. MAY TOP COPY

INFO IMMEDIATE HONG KONG, PEKING, WASHINGTON

Q DIST?

MESSAGE TO THE JAPANESE FOREIGN MINISTER

THE FOLLOWING IS THE TEXT OF A PERSONAL MESSAGE FROM ME TO THE JAPANESE FOREIGN MINISTER. PLEASE ARRANGE FOR IT TO BE

1.

DELIVERED.

BEGINS

FOLLOWING OUR VALUABLE TALK IN PEKING LAST MONTH, I WANTED TO WRITE TO YOU ABOUT THE STATE OF OUR RELATIONS WITH CHINA OVER

HONG KONG.

IN THE REMAINING YEARS OF BRITISH ADMINISTRATION IN HONG KONG WE WILL NEED TO INTENSIFY OUR COOPERATION WITH CHINA OVER HONG KONG, IN ORDER TO BRING ABOUT A SMOOTH TRANSITION IN 1997. THIS IS STIPULATED IN THE SINO-BRITISH JOINT DECLARATION. THAT

AGREEMENT ALSO STIPULATES THAT BRITAIN WILL BE RESPONSIBLE FOR

THE ADMINISTRATION OF HONG KONG UNTIL 30 JUNE 1997.

THESE CONSIDERATIONS HAVE BEEN REFLECTED IN OUR DISCUSSIONS WITH THE CHINESE OVER THE AIRPORT. IT IS IMPORTANT THAT THE HONG KONG GOVERNMENT HAS THE ABILITY TO MANAGE THE PROJECT EFFICIENTLY. THE CHINESE GOVERNMENT HAVE CONCERNS ABOUT THE

EFFECT OF THE PROJECT ON THE FINANCIAL POSITION OF HONG KONG

AFTER 1997: WE HAVE MADE PROPOSALS WHICH SHOULD MEET THESE CONCERNS. OUR NEGOTIATORS ARE CURRENTLY IN PEKING FOR TALKS ON THESE MATTERS.

I HOPE THAT IN PRIVATE CONTACTS WITH THE CHINESE AUTHORITIES YOUR GOVERNMENT WILL TAKE THE OPPORTUNITY TO EMPHASISE TO THEM

THAT THE INTERNATIONAL COMMUNITY ATTACH GREAT IMPORTANCE TO THE SUCCESS OF THE JOINT DECLARATION AND TO THE MAINTENANCE OF HONG

KONG'S LONG-TERM PROSPERITY AND STABILITY: AND THAT INVESTOR CONFIDENCE IN HONG KONG WILL BE ENHANCED IF BRITAIN AND CHINA CAN COOPERATE EFFECTIVELY TO MANAGE THE TRANSITION TO CHINESE SOVEREIGNTY.