TNAG-2616-FCO40-3807-European-Community-Troika-discussions-regarding-Hong-Kong-1992 — Page 4

RESTRICTED

COVERING CONFIDENTIAL

interpret unwelcome (to them) developments in Hong Kong (eg victory of liberals in September 1991 LegCo elections, row

in LegCo over Court of Final Appeal) as British 'plots'.

Good if our colleagues can help explain the realities to the

Chinese.

The New Airport

All concerned with the new airport are now firing on all

cylinders, and the Hong Kong Government are pushing ahead to

complete projects as far as possible by mid-1997. The Provisional Airport Authority is expanding rapidly to meet all its tasks, and the Airport Committee under the JLG as

well as the Airport Consultative Committee seem to be functioning well. The Chinese are meeting their obligations under the MOU to cooperate

HKG are keeping cards close to their chest on the

competition for the airport fixed link.

We aren't privy to who is leading, but we hope the Anglo-Japanese consortium

will succeed. Level playing-field.

Air Service Agreements

So far eight separated agreements have been signed and others are being discussed in the Sino-British Joint Liaison Group. Chinese are being difficult (about Taiwan), but we keep plugging.

Vietnamese Migrants

This remains a difficult problem for Hong Kong. We are disappointed at the Vietnamese unwillingness to sign up to the second orderly Repatriation Programme.

MARAJU/2

RESTRICTED

COVERING CONFIDENTIAL