TNAG-2625-FCO40-3816-Visit-by-Douglas-Hurd--Secretary-of-State-for-Foreign-and-Co-1992 — Page 7

15. Early agreement on Defence Lands?

There has been some movement, and we have recently put some new proposals on the table. But we are not there yet.

Miscellaneous

16. Chinese Incursions into HK waters

- Noted that the Chinese have said that those responsible for the recent incursion will be dealt with severely. that we maintain good cooperation in anti-smuggling work.

17. Military Exercise in Hong Kong (if raised)

Important

This will be simply a command post exercise (no troop movements). Planned for some months. No relation to recent

events.

18. MFN for China and section 301 action

President Bush veto shows US administration considers this not right way to influence Chinese and recognises Hong Kong's position. Hope 2 sides can resolve trade differences before 10 October deadline.

19. Localisation

Hong Kong civil service already highly localised and process continues. Must be for Chris Patten to determine right way forward.

questions.gen.bern