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445
MDHIAN 415
LIVELIHOOD AND ECONOMIC DEVELOPMENT OF HONG KONG. TO ENSURE A SMOOTH TRANSITION, THE BRITISH SIDE SHOULD NOT UNILATERALLY AWARD CONTRACTS, AGREEMENTS AND FRANCHISES STRADDLING 1997, BUT SHOULD DISCUSS WITH CHINA BEFORE AWARDING THEM. THE EDITORIAL REGRETTED THAT WE HAD NOT DISCUSSED WITH THE CHINESE ISSUES SUCH AS CT9, LAND AT HMS TAMAR AND THE NEW AIRPORT. IT CALLED ON US TO STEP UP EFFORTS TO NEGOTIATE WITH CHINA ON ALL MAJOR CONTRACTS AND FRANCHISES STRADDLING 1997 ON THE BASIS OF THE AGREEMENT RECENTLY REACHED ON THE THREE FRANCHISES.
SIR PERCY CRADOCK.
15. SIR PERCY CRADOCK'S INTERVIEW WITH ATV YESTERDAY WAS REPORTED IN MANY PAPERS, WHICH PLAYED UP HIS REMARKS THAT BRITISH POLICY TOWARDS CHINA ON HONG KONG ISSUES HAD RECENTLY REVERTED FROM A TOUGH STAND ADOPTED LAST YEAR TO THE PREVIOUS APPROACH OF CO-OPERATION AND SOLVING PROBLEMS THROUGH CONFIDENTIAL BUT DIFFICULT TALKS. HE WAS QUOTED AS SAYING THAT THREE FACTORS HAD LED TO BRITAIN'S CHANGE TO A TOUGHER STAND LAST YEAR WHICH HE PERSONALLY DID NOT APPROVE: THE CHANGE OF THE GOVERNOR: DEMAND IN HONG KONG FOR GREATER DEMOCRACY POST-TIANANMEN: AND PRESSURE FROM PARLIAMENT AND THE MEDIA THAT A TOUGHER STAND WOULD YIELD BETTER RESULTS. SIR PERCY ALSO SAID THAT AS THERE HAD BEEN A LOT OF MISUNDERSTANDINGS ABOUT HIS VISIT TO PEKING, HE HAD TO MAKE CLARIFICATIONS.
PATTEN
YYYY
DISTRIBUTION
72
MAIN
65
.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
PAGE
4
UNCLASSIFIED
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