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delegation from HK (8.11) that an agreement might eventually be reached. If not, the Chinese side would act in accordance to the BL after 1997.
5. The Head of the Second Department of HKMAO, Wang Fengchao, reiterated (11.11) that if the political reform proposals were tabled in Legco before an agreement was reached, it would mean end to the talks and the Chinese side would not agree to any reform package approved by Legco. Head of HKMAO's First Department Chen Zuo'er denied the Chinese side had compiled a hit List of British firms. He said the JD had taken account of British investments in HK and the Chinese side would observe that.
6. The papers noted HKMAO director Wang Qiren (12.11) said in Macau that it the talks were based on the three conformities, and simple issues such as the 1994 elections could be tackled first before the 1995 elections, this could be a good way to proceed and the Chinese side would not disagree.
7. Chinese Foreign Affairs Ministry spokesman Wu Jianmin said (12.11) the proposal to deal with the easier problems first was first raised by Qian Qichen, during a meeting with the Secretary of State. Wu reiterated the Chinese side had not changed their stand on the HK question and they hoped an agreement would be reached on the basis of 'three conformities'.
8. The papers carried an article (12.11) in the latest issue of the Contemporary magazine noting a meeting in Peking in end October called by HKMAO and attended by about 100 Hk and Macau experts throughout China. The meeting was held in the name of studying Deng's writings on HK, but the real purpose was to convey a message by 'a leader in the central' on contingency measures in the event of a breakdown in the talks. Main points in the message included that the Chinese had prepared for three scenarios of Sino-British relations - no cooperation, friction and confrontation and reasons why China could not give way on the talks. China might take back HK before 1997 in the event of confrontation resulting in chaos in HK. Papers noted (18.11) a HKMAO spokesman denied such a meeting took place.
9. The NCNA HK Branch Vice Director Zhang Junsheng (13.11) welcomed Britain's decision to accept China's proposal to deal with simpler issues first in the talks. Zhang said the Chinese side hoped ultimately an agreement could be reached on both the 1994 and 1995
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