UNCLASSIFIED
17605J
MDH N 802)
HE
7. WANG ALSO REPEATED CHINESE SUPPORT FOR THE NEW AIRPORT. SAID TALKS COULD BE HELD ANYTIME IF THE BRITISH COULD COME UP WITH FINANCIAL ARRANGEMENTS PROPOSALS IN LINE WITH THE MOU, INCLUDING LEAVING DOLLARS 25 BILLION OF RESERVES TO THE SAR AND LIMITING BORROWINGS TO NOT MORE THAN DOLLARS 5 BILLION.
QIAN QICHEN
8. IN MEETING OVERSEAS CHINESE IN BANGKOK, QIAN QICHEN WAS REPORTED TO HAVE SAID THAT WHILE THERE WERE SOME PROBLEMS BETWEEN CHINA AND BRITAIN AT PRESENT, HE BELIEVED THAT THEY COULD BE RESOLVED THROUGH NEGOTIATIONS.
LI RUIHUAN
9. CPPCC PRESIDENT LI RUIHUAN TOLD A VISITING DELEGATION OF BUSINESSMEN THAT POLITICAL AND ECONOMIC ISSUES WERE LINKED. WAS ALSO THE CASE IN THE CURRENT POLITICAL ROW AND THE NEW AIRPORT ISSUE: THEY COULD NOT BE DISCUSSED SEPARATELY.
SOURCES
THIS
10. WAH KIU YAT PO QUOTED SOURCES AS SAYING THAT DURING THE TALKS THE CHINESE WOULD PUT FORWARD THEIR PROPOSALS ON THE ELECTION COMMITTEE, FUNCTIONAL CONSTITUENCIES AND OTHER ELECTION- RELATED ISSUES. IT WAS BELIEVED THAT DURING THE FIRST DAY OF THE TALKS, BOTH SIDES WOULD MERELY RESTATE THEIR POSITIONS AND DISCUSS HOW THE TALKS SHOULD PROCEED. THE CHINESE BELIEVED THAT THE FIRST ROUND OF TALKS WOULD NOT TOUCH ON MANY SUBSTANTIVE ISSUES.
11.
ON THE THROUGH TRAIN, THE REPORT SAID THAT IF THE BRITISH SIDE RAISED IT, THE CHINESE WOULD EXPRESS WILLINGNESS TO DISCUSS: BUT WOULD CONFINE DISCUSSION TO ISSUES RELATED TO THE SYSTEM. THE QUESTION OF ''WHETHER THE PASSENGERS COULD CROSS OVER TOGETHER WITH THE TRAIN'' WOULD BE MOST THORNY AND WOULD TAKE MORE TIME TO DISCUSS. BUT THIS SHOULD NOT BE A PRE-CONDITION FOR THE TALKS : OTHERWISE IT WOULD BE DIFFICULT TO GET THE TALKS STARTED.
12. HK ECONOMIC JOURNAL QUOTED SOURCES FROM LONDON AS SAYING FCO AND THE GOVERNOR WERE SPLIT ON WHO SHOULD TAKE A LEADING POSITION IN THE TALKS. THE REPORT NOTED THAT THE GOVERNOR HAD TOLD FCO THAT HE WOULD WATCH THE TALKS CLOSELY SO AS TO DECIDE ON WHEN TO PUT THE BILL TO LEGCO. THIS INDICATED HIS WISH TO PLAY A DECISIVE ROLE IN THE TALKS. FCO OFFICIALS ON THE OTHER HAND FELT
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