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OF THE LOANS SHOULD BE LESS THAN HKD 5 BILLION, THEY FELT THAT THE

LOANS SHOULD BE WITHIN THE REPAYING ABILITY OF THE RELEVANT

ORGANISATIONS SO AS NOT TO CREATE ANY BURDEN FOR THE SAR.

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ACCORDING TO PRESS REPORTS (25.6), WHEN ASKED WHY THE FOREIGN SECRETARIES HAD NOT BEEN MEETING EVERY 6 MONTHS IN ACCORDANCE WITH THE AIRPORT MOU, THE MFA SPOKESWOMAN FAN HUIJUAN SAID THAT THE MATTER WAS SOMETHING TO BE DISCUSSED AND DECIDED BY THE TWO SIDES.

GOVERNOR'S LONDON VISIT

13. A MING PAO ARTICLE SAID (25.6) THAT THE CHINESE WERE VERY CONCERNED ABOUT THE GOVERNOR'S LONDON VISIT. NCNA HK SEEMED TO HAVE

CONCLUDED THAT THE PURPOSE OF THE TRIP WAS TO HELP THE PM WITH THE PROBLEM OF HIS DECLINING POPULARITY. THE ARTICLE ALSO REPORTED

RECENT RUMORS THAT THE GOVERNOR WOULD BE TRANSFERRED BACK TO BRITAIN BEFORE THE MID-AUTUMN FESTIVAL (ON 30.9).

JLG

COVERAGE. IN

14. THE CLOSING OF THE JLG MEETING WAS GIVEN EXTENSIVE THEIR HEADLINES, THE PAPERS REPORTED THAT THE TWO SIDES ACCUSED EACH OTHER FOR THE LACK OF PROGRESS. UKREP JLG WAS REPORTED TO HAVE

SAID THAT THE CHINESE WAS PROBABLY THINKING THAT BY GOING SLOW ON

JLG WORK IT COULD PUT PRESSURE ON THE BRITISH SIDE IN THE WIDER CONTEXT. MOST PAPERS BELIEVED THAT THE WIDER CONTEXT REFERRED TO THE TALKS ON ELECTIONS. THE PAPERS ALSO QUOTED UKREP AS SAYING THAT

IF THE JLG CONTINUED WITH THE SLOW PACE, IT WOULD TAKE MORE THAN 100 YEARS TO FINISH DISCUSSION ON ALL RELEVANT INTERNATIONAL AGREEMENTS. ACCORDING TO THE PRESS, GUO SAID AT HIS PRESS CONFERENCE THAT THE LACK OF PROGRESS WAS DUE TO THE BRITISH SIDE'S FAILURE TO PROVIDE ADEQUATE INFORMATION. HE SAID THAT SINO-BRITISH COOPERATION IN HONG KONG MATTERS DEPENDED ON THE ''THREE CONFORMITIES'' IF SUCH BASIS WAS UNDERMINED, THE WORK OF JLG AND IN OTHER AREAS WOULD BE AFFECTED.

15. MANY PAPERS QUOTED THE GOVERNOR AS SAYING THAT IF THE CHINESE

SIDE HAD WANTED MORE INFORMATION ON MATTERS TO BE DISCUSSED AT THE JLG, THEY SHOULD HAVE ASKED FOR IT BEFORE MEETINGS AND NOT COMPLAIN AT OR AFTER MEETINGS THAT THEY HAD NOT RECEIVED IT. THE ACTING CS

WAS QUOTED TO HAVE SAID THAT IF THERE WAS SINCERITY ON THE PART OF THE CHINESE, THE MEETINGS WOULD HAVE ACHIEVED BETTER RESULTS. SHE ADDED THAT IF THE TWO SIDES COULD NOT RESOLVE THE MANY QUESTIONS

CONCERNING HONG KONG BEFORE 1997, HONG KONG PEOPLE WOULD BE THE ONES WHO SUFFERED. SCMP, STANDARD AND SING TAO DAILY COMMENTED THAT CHINA'S PERFORMANCE AT THE JLG CASTED DOUBT ON CHINA'S PROMISE TO

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