TNAG-2727-FCO40-3933-Hong-Kong-political-parties-Association-for-Democracy-and-Pe-1993 — Page 54

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4. Chinese officials have said publicly that they wish to see a revised financing proposal, but their comments about what they

expect it to contain suggest that our new proposal may not

secure agreement. In practice their attitude is likely to depend on developments on the constitutional front.

5.

The Hong Kong Government plan to make the financing plan

public on 21 May, and to consult the Airport Consultative

Committee and the LegCo Ad Hoc Group on 24 May. In early June,

the Hong Kong Government will have to seek funds from the

Finance Committee for the continued operation of the Provisional

Airport Authority.

TALKS ON ELECTORAL ARRANGEMENTS

6.

The first two rounds of talks were held in Peking 22-24

and 28-29 April. The third round is due on 21-23 May. We were

unable to get down to discussion of practical arrangements in

the first two rounds of talks, although the atmosphere was

positive and workmanlike. But the Chinese strategy was clearly

to tick-off agreement to as many as possible of their original eight prejudicial points of principle, and to concentrate on wearing us down on the remainder.

7. Judging from Foreign Minister, Qian Qichen's reply to the

Secretary of State's message of 7 May, the Chinese are not yet ready to move away from this position and are waiting for us to "take a new step". The prospect for the third round is therefore of three days of trench warfare, with neither side

having anything new to say.

NATIONALITY ISSUES

8. Mr Fung is not a member of the LegCo Nationality

sub-committee, but he has endorsed (and may raise with

sos.call.PR

SLM

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