TNAG-2362-FCO40-3433-Visit-by-John-Major--UK-Prime-Minister--to-Hong-Kong--Septem-1991 — Page 51

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AND HIS CHINESE OPPOSITE NUMBER ALSO TOOK PART IN THE VISIT.

4.

THE TWO PRIME MINISTERS SIGNED THE MEMORANDUM OF UNDERSTANDING ON THE CONSTRUCTION OF A NEW AIRPORT IN HONG KONG AND RELATED ISSUES, WHICH WAS INITIALLED ON 30 JUNE AND PUBLISHED ON 4 JULY. AT THE END OF THE TALKS THEY ISSUED A JOINT PRESS COMMUNIQUE, WHICH CONCENTRATED ON HONG KONG ISSUES AND SUMMARIZED THE PROGRESS MADE (PEKING TELNO 1499, NOT TO ALL).

BACKGROUND (MAY BE USED FREELY)

5.

MAIN POINTS OF PROGRESS WERE:

(A) LI PENG CONFIRMED THAT CHINA NOW HAD NO DOUBTS ABOUT HONG KONG'S NEW AIRPORT AND THAT THE DIFFERENCES BETWEEN THE TWO SIDES HAD BEEN RESOLVED. HE ALSO CONFIRMED THAT CHINA WANTED HKG TO REMAIN AN EFFECTIVE GOVERNMENT, MANAGING HONG KONG DURING THE TRANSITIONAL PERIOD.

(B) LI PENG AGREED ON THE NEED TO SPEED UP WORK ON JOINT LIAISON GROUP (JLG) ISSUES TO ENSURE HONG KONG'S PROSPERITY, AND STABILITY AND A SMOOTH TRANSITION. THE JOINT COMMUNIQUE SETS OUT SOME SPECIFIC MEASURES. IN ADDITION THE SECRETARY OF STATE AND HIS CHINESE COUNTERPART WILL MEET EVERY SIX MONTHS AND AIM TO REACH DECISIONS ON ISSUES WHICH CAN NOT BE RESOLVED IN THE JLG.

THE PRIME MINISTER MADE CLEAR THAT HE WOULD BE READY TO DEAL DIRECTLY WITH CHINESE LEADERS IF NECESSARY.

(C) THE CHINESE CONFIRMED THEIR AGREEMENT TO HONG KONG'S NEGOTIATING AND SIGNING ITS OWN INVESTMENT PROMOTION AND PROTECTION AGREEMENTS WITH MAJOR TRADING PARTNERS, WHICH WILL CONTINUE AFTER 1997. (WE/HKG SHALL BE IN TOUCH WITH PARTNERS BEFORE LONG).

(D) AGREEMENT WAS REACHED ON THE EARLY ESTABLISHMENT OF A COURT OF FINAL APPEAL IN HONG KONG (REPLACING THE PRIVY COUNCIL'S ROLE IN RELATION TO HONG KONG). THE CHINESE CONFIRMED THAT THEY STOOD BY THE JOINT DECLARATION PROVISIONS THAT JUDGES SHOULD BE CHOSEN BY AN INDEPENDENT JUDICIAL SERVICES COMMISSION. THIS WILL BE A MAJOR CONTRIBUTION TO THE PROTECTION OF JUDICIAL INDEPENDENCE IN HONG KONG, AND IN PARTICULAR TO ENSURING THE SELECTION OF JUDGES TAKES PLACE WITHOUT POLITICAL INTERFERENCE. EXPERT TALKS WILL TAKE PLACE IN HONG KONG ON 9-10 SEPTEMBER TO RESOLVE POINTS OF DETAIL.

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