CONFIDENTIAL
- 2
3.
I told her that I expected a fair amount of progress on less prominent nuts and bolts issues. The atmosphere had certainly been improved by the Prime Minister's visit, and routine work was now proceeding much more smoothly.
4.
She then said that she wanted to talk to me after my return about the sort of new problems which would be going to the JLG as a result of the airport MOU. I expressed puzzlement. I asked her if she meant the Airport Committee. She said that she did not. Her impression was that now that the precedent had been set it would be necessary for the Hong Kong Government to discuss far more of its policies with the Chinese through the JLG. I said that I thought this was quite wrong. It was true that as the time remaining to the Hong Kong Government before 1997 shortened, it was likely to be necessary to discuss rather more closely with the Chinese a number of issues. However this was not a consequence of the Airport MOU: it had already been envisaged in Annex 2 to the Joint Declaration. The Airport MOU was itself a consequence of the wider need to talk to the Chinese about major areas of policy affecting the position after 1997 in the final years.
She maintained her view: she then said that if we really intended to talk to the Chinese about such things as the corporatisation of RTHK, this would be evidence of what she had in mind. I said that we had not discussed that subject with the Chinese, and that I could not say whether we would do so in the future. She said that she had been told firmly that it would be necessary for the subject to be discussed with the Chinese. I said that this might or might not be so: the point was that there was no legal necessity for the Hong Kong Government to discuss such things with the Chinese. There might however well be a practical necessity where Chinese acquiescence was in fact necessary if a policy was to be successful. She said that she entirely accepted this.
5. I imagine that she will have heard about the corporatisation of RTHK through RTHK itself. But you may like to be aware that this may hit the press in due course.
Tens ever
cc.
PA
A C Galsworthy
Mr T Miller, IC
Mr Chris Osborne, BTC
Mr Y C So, Sec. Rec. & Culture
Mr P Ricketts, HKD
Mr I Wotherspoon, S for S
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