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105/Lord Caithness
PS/PUS HKD
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SECRET
PM/91/025 News Depk
PRIME MINISTER
HKB 18212
RECEIVED INIME
2 5 MAR 1991
DES:
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Barack
18/3
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Hong Kong Airport Project
Mr. Cox Mestone
19/3
M/m
1. You have agreed that I should go ahead with my plans to visit Hong Kong and China early next month.
2.
The main aim of my visit will be to try to come to a better political understanding with the Chinese on increased consultation and cooperation over Hong Kong issues. We need to maintain the authority of the
Hong Kong Government and resist the Chinese demands for a
right of veto over the financial management of the
territory before 1997. But equally we shall not have done well if the transfer of sovereignty takes place in an atmosphere of mistrust and recrimination. We need, if
we can get it, a steady build up of practical cooperation with China leading up to the hand-over.
3.
In this context, plans for the new airport have acquired critical significance. Chinese support for the project is probably essential if it is to attract private sector participation. It would also provide a substantial boost to confidence in Hong Kong and set
important precedents for the future. But our search for Chinese support must not compromise the Hong Kong Government's overall control of the project or its existing financial powers.
X
SECRET
/4.
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