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REMAINED ENTIRELY OPEN ABOUT THE PROPOSAL. IF LEGCO WOULD LIKE TO PROCEED AND WERE ABLE TO AGREE ON ARRANGEMENTS FOR ITS COMPOSITION, THEN THE GOVERNMENT WOULD BE VERY WILLING TO MOVE AHEAD WITH THE IDEA.
HOUSE OF LORDS'S DEBATE
29. REPORTS NOTED (5.11) THAT AT A HOUSE OF LORD'S DEBATE, FORMER HK GOVERNOR LORD MACLEHOSE EXPRESSED REGRET THAT THE DISPUTE OVER ELECTORAL MATTERS SHOULD DEVELOP INTO A MAJOR CONFRONTATION AND SAID THE GOVERNMENT SHOULD BEAR IN MIND LATE CHINESE PREMIER ZHOU ENLAI'S WORDS 'LET US SET ASIDE DIFFERENCES AND CONCENTRATE ON POINTS IN COMMON'. IT WAS NOTED THAT GOVERNMENT MINISTER BARONESS TRUMPINGTON REITERATED BRITISH GOVERNMENT'S SUPPORT FOR THE GOVERNOR'S CONSTITUTIONAL PACKAGE. SHE SAID HK WAS A DYNAMIC SOCIETY WHICH COULD NOT STAND STILL TO MAINTAIN THIS POSITION. THE PROPOSALS WERE RECEIVING A HIGH DEGREE OF SUPPORT IN HK AND THE MARKET REMAINED STRONG. DISCUSSIONS WITH THE CHINESE GOVERNMENT HAD JUST STARTED AND THE GOVERNMENT LOOKED FORWARD TO CONTINUING THE DIALOGUE. IT WAS ALSO NOTED THAT LORD WILSON AND BARONESS THATCHER, WHO WERE PRESENT, DID NOT TAKE PART IN THE DEBATE.
LAND FUND
30.
THE DISCLOSURE BY THE LEADER OF THE CHINESE LAND COMMISSION TEAM, SUN YAN HENG, THAT THE SAR LAND FUND HAD REACHED 33.7 BN
SINCE ITS INCEPTION IN 1986 WAS WIDELY NOTED (4.11). MR SUN SAID THE FUND, TOGETHER WITH THE 25 BN THE HKG HAD PROMISED TO LEAVE IN 1997, WOULD NOT BE ENOUGH TO PROVIDE A CUSHION FOR THE SARG AT THE TIME OF CHANGE OVER. MR SUN ALSO REJECTED AT THIS STAGE AS UNREALISTIC THE BRITISH PROPOSAL TO USE THE MONEY TO HELP FINANCE THE AIRPORT. MR SUN SAID PUBLICATION OF THE ACCOUNTS WAS TO INCREASE TRANSPARENCY BECAUSE IT WAS HK PEOPLE'S MONEY. REPORTS NOTED A GOVERNMENT SPOKESMAN SAID THE GENERAL PUBLIC WOULD WELCOME THIS MOVE TO INCREASE THE TRANSPARENCY OVER THE OPERATION OF THE FUND.
AIRPORT
31. THE CHIEF SECRETARY WAS QUOTED AS SAYING (11.11) THAT IT WAS THE GOVERNMENT'S FIRST PRIORITY TO OBTAIN AGREEMENT WITH CHINA ON
THE AIRPORT'S FINANCIAL PACKAGES. IF AGREEMENT COULD NOT BE REACHED, PROGRESS WOULD BE CONSIDERED ON A STEP BY STEP BASIS: THE FIRST STEP BEING A DECISION ON THE AIRPORT SITE FORMATION CONTRACT WHOSE TENDER VALIDITY RAN TO THE END OF THE MONTH.
DAVID SAID THE GOVERNMENT WAS CONSIDERING AN EARLIER CHINESE
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