TNAG-2735-FCO40-3943-Hong-Kong-role-of-the-Legislative-Council-(LEGCO)-1993 — Page 14

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agreement with the Chinese Government" but people in Hong Kong including the media had already noted that he then emphasised that the talks must finish in weeks rather than months, and this made them suspicious about his sincerity.

4. The article then reports the reaction from the Hong Kong Alliance as regretting the Governor's adherence to his plans for arrangements for the 1994/95 elections.

5.

The article adds that the address also mentioned the unresolved question of the new airport. On this it reports that a Hong Kong financial expert was worried that the large amount of expenditure could unbalance the economy in the future and lead to a rapid rise in Hong Kong's rate of inflation.

There has as yet been no coverage of the Governor's LegCo address on Chinese television.

6.

MCLAREN

YYYY

ΜΑΙΝ

.HK POLICY

HKD

PUSD

FED

57

DISTRIBUTION

64

NTCD

PLANNERS

RAD

PS

LEGAL ADVISERS//MS BARRETT LEGAL ADVISERS//MISS BROOKS

NEWS D

PS/MR GOODLAD

SIR J COLES

MR HUM

ADDITIONAL

7

CAOFF//SIR R BRAITHWAITE (DIO) CAOFF //MISS NEVILLE-JONES

CAOFF//MR SIBSON PS NO 10.

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