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ENCLOSURE 1 TO D/ACDS (0)/181/34 DATED 24 SEP 92
HONG KONG STEERING COMMITTEE: FCO POLITICAL UPDATE
SPEAKING NOTE FOR MR R BUNTEN
New Governor now operating smoothly.
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Confidence in Hong Kong high. Economy doing well mainly due increased trade with China (but watch US/China trade
friction).
Relations with China over Hong Kong fine on the surface. Unexpected progress in JLG on for example the Defence Lands negotiations. However no progress on the Airport issue, although the Chinese have indicated in the press and otherwise that they might be flexible if the political difficulties are removed.
Chinese have been unsure how to deal with the governor. Some signs that Lu Ping in the HKMAO in Peking and Zhou Nan in NCNA Hong Kong are adoping different approaches.
Muted response so far towards the new Governor but the likelihood is that we will be in for a rough time following the Governor's policy address to Legco on 7 October.
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