TNAG-2494-FCO40-3626-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1992 — Page 47

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134532 MDHIAN 0945

PAST AND WE ARE GLAD TO NOTE THAT THE CHINESE SIDE INTEND IN FUTURE TO TAKE A POSITIVE ATTITUDE TO POST-1997 INVESTMENT IN HONG KONG.

5.

1

IN ANSWER TO SUPPLEMENTARIES WE WILL DRAW ON YOUR TELNO 948

IF TO PEKING AS MODIFIED BY OUR TELNO 2801. WE WILL ALSO SAY, PRESSED, THAT THE SUBJECT OF FRANCHISES AND CONTRACTS STRADDLING 1997 IS UNDER DISCUSSION AT JLG XXV, AND PROCEEDINGS OF THE JLG DISCUSSION ARE CONFIDENTIAL. (IF PRESSED TO DISCLOSE THE LIST OF FRANCHISES WHICH WE HAVE GIVEN TO THE CHINESE, WHICH IN ANY CASE HAS BEEN DISCLOSED IN TA KUNG PAO, WE SEE NO OBJECTION TO DOING SO. BUT WE WILL UPDATE THE LIST TO REFLECT AGREEMENTS ALREADY REACHED IN JLG ON THE CLP AND CETS FRANCHISES. WE WILL ALSO AVOID BEING DRAWN INTO A DEBATE IN LEGCO ON THE INTERPRETATION OF BL 158 ON (INTERPRETATION OF THE BASIC LAW) AND WHO IS RESPONSIBLE FOR DECIDING WHETHER OR NOT A PARTICULAR CONTRACT IS COMPATIBLE WITH THAT LAW.)

6. UKREP JGL CONCURS.

GRATEFUL FOR YOUR COMMENTS DESKBY 080D3OZ.

7"

PATTEN

YYYY

ΜΑΙΝ

.HK POLICY

63

DISTRIBUTION

72

122

PLANNERS

HKD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

.AND MS BROOKS

NEWS D

RAD

PS

PS/MR GOODLAD

SIR J COLES

MR APPLEYARD MR HUM

ADDITIONAL

CAOFF//SIR R BRAITHWAITE CAOFF//MISS NEVILLE-JONES

CAOFF/MR SIBSON

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CAOFF//MS D CORNER CAOFF//MR CHARLTON

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PS/PM.

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