CONFIDENTIAL
36
112645
MDHIAN 8277
CONFIDENTIAL
FM HONG KONG
TO DESKBY 14140OZ FCO TELNO 133
OF 14120OZ JANUARY 91
la
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
TOP COPY Q DIST?
НИВ 182 12
PADS EXPERT TALKS : 2ND ROUND : ASSESSMENT
1. CHINESE STATEMENTS DURING THE COURSE OF THE 2ND ROUND OF THE PADS EXPERT TALKS ARE OF MAJOR SIGNIFICANCE. THEY HAVE NOW MADE PUBLIC AND EXPLICIT WHAT HAS BEEN IMPLICIT IN THEIR DEALINGS WITH US FOR SOME MONTHS: NAMELY A WISH FOR A SAY IN AND THEIR AGREEMENT TO ALL MAJOR ISSUES RELATING TO 1997. THIS IS A TREND WHICH I HAVE POINTED TO IN A NUMBER OF TELEGRAMS OVER THE PAST FEW MONTHS. IT IS THE SHADOW OF 1997 IN A VERY CLEAR FORM. IN PRACTICE ALL IMPORTANT ISSUES CAN BE CLASSIFIED AS RELATING TO 1997 BY THE CHINESE. THEY HAVE NO DOUBT USED THE AIRPORT AS THE TEST CASE BECAUSE THEY BELIEVE IT IS AN AREA WHERE THEY HAVE GOOD LEVERAGE.
2. I DO NOT BELIEVE THAT ANYTHING SAID BY OUR SIDE PUBLICLY OR PRIVATELY DURING THE 2ND ROUND, OR ANYTHING SAID OR DONE IN HONG KONG DURING THE PERIOD IMMEDIATELY BEFORE THIS ROUND, BROUGHT ABOUT THIS SPATE OF HOSTILE ANNOUNCEMENTS. EVERY INDICATION IS THAT CHINESE ACTIONS AND STATEMENTS OVER THE PAST FEW DAYS WERE PREPLANNED. FOR EXAMPLE :
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AT THE AIRPORT LUO SAID IMMEDIATELY THAT THERE WOULD BE NO JOINT COMMUNIQUE OR AGREED PARALLEL STATEMENTS. THERE IS AN IMPLICATION HERE THAT HIS STATEMENT AT THE CLOSING PRESS CONFERENCE MAY COULD BY THEN ALREADY HAVE BEEN CLEARED AT A HIGH LEVEL.
THE CHINESE TOLD THE PRESS ON THE EVENING OF THE FIRST DAY OF THE TALKS, BEFORE OUR TEAM HAD EVEN RESPONDED TO LUO'S DEMAND THAT MORNING ABOUT SUSPENDING ALL ACTION RELATED TO THE AIRPORT, THAT THE TALKS WERE DEADLOCKED AND THAT THE PRESS SHOULD COME TO THE MEETING ON THE SECOND DAY WHICH COULD BE EXPECTED TO END WITHIN AN HOUR. THE THIRD DAY'S MEETING MIGHT BE CANCELLED. IN THE VENT, OUR TEAM'S CALL FOR A BREAK TO PREPARE A RESPONSE TO LUO'S FURTHER REMARKS CAUSED CONSIDERABLE CONFUSION: THE PRESS WERE STANDING OUTSIDE THE MEETING ROOM DOOR EXPECTING THE END OF
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