central government. Naturally the problem was a matter of Chinese internal affairs and foreign countries should keep out. Selling arms to Taiwan could not contribute to a peaceful solution as it would make the local authorities less ready to negotiate. China had not ruled out the use of force to reunite Taiwan, but would not use it against the Taiwanese people, who desired peaceful reunification.
HONG KONG
5.
Replying to a question from Bettini (Italy EUL) Yao Guang said that China could not accept that Hong Kong should install a Western system of government. As far as China was concerned the Joint Declaration with UK fully defined the future of Hong Kong so no problems should exist. They did
did not object to more democracy so long as the Joint Declaration was not infringed. People had to understand that the Fundamental Law was based on the system which the British had maintained in Hong Kong for years. There was no justification for Britain trying to change things in a hurry now. Any changes should correspond to Hong Kong's interests and must contribute to prosperity and stability.
6.
a
He objected to the EP passing resolutions on Hong Kong (see the EP's resolution on economic and trade relations with Hong Kong, copy enclosed). Hong Kong's problems until 1997 were for China and the UK. After that they would be part of China's internal affairs in which no other nation should interfere if it wanted good bilateral relations. He hoped the EP would set high value on
on relations with China and be careful to maintain them ! On the airport he said that the British had not applied the memorandum of understanding adequately.
7. Yao rejected implied criticism in other questions on China's policy on arms sales and the peace process in Cambodia. Unfortunately Tibet and relations with India/Pakistan were not raised.
your
ener
cc P Mathers Esq ECD (P)
Rod Bunten Esq HKD Chancery Peking Mr Madelin
Merlin
Martin Lamport
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