UNCLASSIFIED
UNCLASSIFIED
FM HONG KONG
TO PRIORITY FCO
TELNO 2784
OF 2807OOZ NOVEMBER 92
Fikc 01214.
TO
INFO PRIORITY PEKING, UKREP JLG HONG KONG
(100)
114144
MDLIAN 8435
ear
سلم ينل مین
ра
CONSULTATION WITH CHINESE SIDE: TA KUNG PAO EDITORIAL AND HONG KONG STANDARD REPORT.
TA KUNG PAO EDITORIAL:
IN ITS EDITORIAL TODAY (28 NOVEMBER), THE TA KUNG PAO MADE A STRONG ATTACK ON THE FUNDING APPROVAL BY FINANCE COMMITTEE FOR THE NEW AIRPORT SITE PREPARATION CONTRACT. THE EDITORIAL LASHED OUT AT HKG FOR TAKING UNILATERAL ACTION ON PROCEEDING WITH THE AIRPORT PLATFORM WORK. IT WARNED THAT WITHOUT AN UNDERTAKING FROM THE CHINESE SIDE, HKG WOULD NOT BE ABLE TO COMPLETE THE MASSIVE AIRPORT PROGRAMME WHILE MAINTAINING A HEALTHY AND STABLE FINANCE. WITHOUT CHINESE SUPPORT HKG'S COSTS IN FLOATING LOANS WOULD VASTLY INCREASE. THE FRANCHISES INVOLVED COULD NOT TRANSCEND 1997 EITHER.
2.
MORE SIGNIFICANTLY, THE EDITORIAL PREDICTED THERE WOULD BE MORE CASES OF CHINA NOT RECOGNISING HKG'S UNILATERAL ACTIONS. IT SAID THAT THE NEW AIRPORT PROGRAMME AND THE GOVERNOR'S CONSTITUTIONAL PACKAGE WERE TWO SEPARATE MATTERS NOT NECESSARILY LINKED TOGETHER. ON BOTH ISSUES, HOWEVER, HKG HAD TAKEN AN APPROACH OF BY-PASSING THE CHINESE SIDE AND ATTEMPTING TO FORCE THEM TO ACCEPT A FAIT ACCOMPLI BY ACTING UNILATERALLY. THESE TWO ISSUES THUS REFLECTED THE CHANGE IN BRITISH ATTITUDE AND THE DEPARTURE FROM THE SPIRIT OF CO-OPERATION AS LAID DOWN IN THE JD AND MOU. NOW THAT BOTH THE ISSUES OF POLITICAL DEVELOPMENT AND INFRASTRUCTURE HAD BEEN DEADLOCKED, THE BRITISH SIDE SHOULD BEAR FULL RESPONSIBILITY. THE CHINESE GOVERNMENT HAD ALREADY MADE IT CLEAR THAT IT WOULD NOT ACCEPT UNILATERAL ACTION BY HKG: AND THE BRITISH SIDE SHOULD BE RESPONSIBLE FOR ALL THE CONSEQUENCES. GUO FENGMIN HAD STATED THAT THE SARG WOULD NOT HONOUR THE CONTRACT FOR CT9 WHICH WAS AWARDED WITHOUT SEEKING CONSULTATION WITH AND AGREEMENT FROM THE CHINESE. THE EDITORIAL CONCLUDED THAT IT COULD BE FORESEEN THAT THERE WOULD BE INCREASINGLY MORE CASES OF UNILATERAL ACTION BY HKG NOT RECOGNISED BY THE CHINESE SIDE, NOTHING THAT THE ONLY WAY TO SOLVE THE PROBLEMS NOW AS FOR THE
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