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FM HONG KONG
TO IMMEDIATE F CO
TELNO 585
OF 25103OZ FEBRUARY 91
INFO PRIORITY PEKING, UKREP JLG HONG KONG
MY TELNO 26 TO PEKING: THIRD ROUND OF EXPERT TALKS: CHINESE SOURCES
1.
A NUMBER OF CHINESE NEWSPAPERS CARRIED STORIES ABOUT THE CHINESE STAND ON THE AIRPORT ON 23 FEBRUARY I.E. WHILE THE EXPERTS WERE STILL MEETING. THEY SAID THAT THE TWO SIDES HAD ADDRESSED THE FINANCIAL ARRANGEMENTS, VARIOUS OPTIONS AND THE AIRPORT AUTHORITY (AA) ON THE FIRST TWO DAYS. THE CHINESE SIDE BELIEVED THAT, WHEN CONSIDERING THE PROJECT, IT WAS NECESSARY TO TAKE INTO ACCOUNT HONG KONG'S FINANCIAL SITUATION AFTER 1997 AND
A FINANCIAL BURDEN SHOULD NOT BE LEFT TO THE SAR. THEY HAD COMMENTED ON THE OPTIONS PUT FORWARD BY THE HKG. THEY BELIEVED THAT THE AA'S POWERS WERE TOO EXTENSIVE AND THAT CHINESE REPRESENTATIVES SHOULD BE INCLUDED ON IT, AS IT WOULD STRADDLE 1997. TWO OR THREE MORE ROUNDS WOULD NEED TO BE HELD BEFORE ALL THE PROBLEMS COULD BE RESOLVED. LU PING WOULD CLEARLY INDICATE CHINA'S STAND ON THE AIRPORT WHEN HE VISITED HONG KONG NEXT WEEK.
2.
THE HONG KONG ECONOMIC JOURNAL OF 23 FEBRUARY QUOTED CHINESE SOURCES AS SAYING THAT THE HKG MUST PROMISE TO LEAVE ABUNDANT FISCAL RESERVES TO THE SARG TO COVER THE SETTLEMENT OF CIVIL SERVANTS' PENSIONS AND ANTICIPATED FLUCTUATIONS IN THE EXCHANGE RATE DURING THE TRANSITION. IT ALSO SAID THAT THE CHINESE SIDE CQNSIDERED THAT THERE SHOULD BE CHINESE REPRESENTATIVES ON THE FUTURE AA AND THAT A NON-GOVERNMENTAL NEW AIRPORT CONSULTATIVE COMMITTEE SHOULD BE SET UP. THIS WOULD BE MADE UP OF PEOPLE OF HONG KONG WITH PROBABLY NO CHINESE INVOLVEMENT. IT SHOULD BE SMALLER THAN THE FORMER BLCC.
3. THE HKEJ ALSO QUOTED CHINESE SOURCES AS SAYING THAT THE CHINESE SIDE WOULD STUDY THE PROPOSALS PUT FORWARD BY THE HONG KONG SIDE. THE ISSUE WOULD NOT BE PROTRACTED FOR LONG, BUT WOULD TAKE MORE THAN A MATTER OF ONE OR TWO WEEKS. IT WOULD NOT BE READY FOR DISCUSSION AT JLG XVIII IN MARCH, BUT WOULD PROBABLY BE ON THE AGENDA OF JLG XIX. THE CHINESE SIDE DEMANDED THAT THE HKG GIVE A CLEAR AND DEFINITE UNDERTAKING TO ENSURE THAT THERE WOULD
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