TNAG-2770-FCO40-3987-Coverage-of-Sino-British-talks-in-the-Hong-Kong-press-1993 — Page 178

UNCLASSIFIED

FM HONG KONG

TO IMMEDIATE FCO

TELNO 941

UNCLASSIFIED

Pa

OF 09090OZ JUNE 93

BF

INFO PRIORITY PEKING, UKREP JLG HONG KONG

36

142621

MDHIAN 4096

TOP COPY Q DIST?

HKB 302/2

15 JUN 1993

CONSTITUTIONAL DEVELOPMENT: PRESS REPORTS.

CONSTITUTIONAL TALKS.

A NUMBER OF PAPERS REPORTED THAT EXCO YESTERDAY REVIEWED THE

PROGRESS OF THE FOUR ROUNDS OF TALKS. QUOTING SOURCES CLOSE TO EXCO, THE PAPERS NOTED THAT THERE WAS NO NEW PROGRESS AT THE TALKS AND THERE WAS STILL A BIG GAP BETWEEN THE TWO SIDES ON THE

1994/95 ELECTIONS. IT WAS UNDERSTOOD THAT THE GOVERNMENT WOULD NOT BE ABLE TO TABLE ANY REFORM BILL IN LEGCO BEFORE ITS RECESS

IN JULY AND THAT THE GOVERNOR WOULD EXPLAIN THE MATTER TO LEGCO.

2.

ORIENTAL DAILY REPORTED TODAY THAT BOTH SIDES WERE STILL

ENGAGING IN EXPLORING EACH OTHER'S BOTTOM LINE AT THE FOURTH

ROUND. THE BRITISH SIDE HAD NOT RAISED PROPOSALS OUTSIDE THE GOVERNOR'S CONSTITUTIONAL PACKAGE, BUT WOULD BE PREPARED TO MAKE CERTAIN CONCESSIONS. THE CHINESE SIDE HOWEVER HAD NOT RAISED ANY

SPECIFIC SUGGESTIONS BUT KEPT ON QUESTIONING THE BRITISH SIDE'S

PROPOSAL. IT WAS CLEAR THAT THE BRITISH SIDE WOULD NOT ACCEPT AN OUTCOME WHICH WOULD MAKE IT DIFFICULT FOR THE GOVERNOR TO CLIMB

DOWN.

3.

THE ARTICLE ALSO REPORTED THAT BRITAIN WOULD NOT SIGN ANY DOCUMENT WITH CHINA ON THE EVENTUAL AGREEMENT. INSTEAD THE

AGREEMENT WOULD TAKE THE FORM OF EITHER AN UNDERSTANDING OR AN ORAL AGREEMENT, AS IN THE CASE OF CFA.

4.

REFERRING TO THE RECENTLY PUBLICISED CHINESE POSITION THAT

POLITICAL AND ECONOMIC ISSUES WOULD BE DELINKED, HONG KONG DAILY NEWS EDITORIAL SAID THAT THE CHINESE SIDE HAD IN FACT RETAINED IN THEIR HANDS MAJOR ECONOMIC CARDS, E.G. THE NEW AIRPORT AND CT9. CHINA WOULD ACTIVELY USE THESE ECONOMIC BAITS TO FISH CONCESSIONS

FROM THE BRITISH SIDE ON CONSTITUTIONAL ISSUES. IF THE BRITISH SIDE REFUSED TO BE TEMPTED, THE CHINESE SIDE WOULD PUT PRESSURE USING THESE ECONOMIC CARDS. THE EDITORIAL WENT ON TO SAY THAT LITTLE PROGRESS WAS ACHIEVED AT THE FOURTH ROUND OF TALKS AND THE

MAJOR STICKING POINT WAS THROUGH TRAIN. THE CHINESE SIDE WERE

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