TNAG-2770-FCO40-3987-Coverage-of-Sino-British-talks-in-the-Hong-Kong-press-1993 — Page 21

UNCLASSIFIED

114077 MDLIAN 7002

ASKED FOR A FURTHER INCREASE IN THE GOVERNMENT'S CAPITAL INJECTION.

26. THE HK ECONOMIC TIMES (28.7) QUOTING CHINESE SOURCES, SAID THAT THE PROGRESS OF THE NEXT MEETING WOULD DEPEND ON THE SINCERITY OF THE BRITISH AND ON WHETHER THE BRITISH SIDE WERE WILLING TO

INCREASE CAPITAL INJECTION. THE PAPER SAID THE CHINESE SIDE IN JUNE HAD PROPOSED THAT THE GOVERNMENT SHOULD DRASTICALLY INCREASE INJECTION INTO THE PROJECT SO THAT THE LOAN COMMITMENT WOULD NOT EXCEED DOLLARS 5 BN. WAH KIU ALSO QUOTED CHINESE SOURCES AS SAYING THE CHINESE SIDE WOULD WANT A FURTHER DOLLARS 10 BN CONTRIBUTION FROM THE GOVERNMENT TOWARDS THE PROJECT.

STATIONING OF THE PLA IN HONG KONG

27.

QUOTING SOURCES (27.7) FROM THE OFFICE OF THE CHIEF OF STAFF OF PLA, THE UNITED DAILY SAID PREPARATORY WORK HAD BEGUN CONCERNING THE STATIONING OF CHINESE TROOPS IN HK. WHILE THE 42ND ARMY IN GUANGZHOU WAS BEING TRAINED FOR THIS PURPOSE, A NAVY BASE WAS BEING RECONSTRUCTED AT SHENTOU FOR FUTURE DEFENCE FOR HK.

FORD

YYYY

DISTRIBUTION

66

MAIN

59

.HK POLICY

HKD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

LEGAL ADVISERS//MISS BROOKS

LEGAL ADVISERS//MR GILES NEWS D

NTCD

PLANNERS

RAD

PS

PS/MR GOODLAD

SIR J COLES

MR HUM

ADDITIONAL

7

CAOFF//SIR R BRAITHWAITE (DIO)

CAOFF/ MISS NEVILLE-JONES.

PSINOTO.

CAOFF //MR SIBSON

PAGE

3

UNCLASSIFIED