TNAG-2780-FCO40-3999-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1993 — Page 103

UNCLASSIFIED

134752

MDHIAN 3703

9. THE SUNDAY PRESS ALSO QUOTED EXCO MEMBER EDWARD CHEN AS

SAYING THAT THE TWO SIDES HELD VERY DIFFERENT VIEWS ON THE

INTERPRETATION OF THE BORROWING PROVISION IN THE AIRPORT MOU.

WHILE THE BRITISH MAINTAINED THAT IT SHOULD ONLY APPLY TO GOVERNMENT LOANS AND SHOULD NOT INCLUDE THOSE INCURRED BY THE PAA AND THE MTRC, THE CHINESE HELD A DIFFERENT VIEW. BARONESS DUNN SAID THAT ONE COULD NOT EXPECT THAT ONE AC MEETING COULD RESOLVE

ALL DIFFERENCES BUT THE IMPORTANT THING WAS THAT DISCUSSION HAD

BEEN REOPENED.

10. RETURNING FROM A VISIT TO PEKING, A DELEGATION OF THE HK CONSERVANCY ASSOCIATION QUOTED CHEN ZUO'ER OF HKMAO AS SAYING

THAT THE LEGISLATION ON THE SETTING UP OF THE AIRPORT AUTHORITY

HAD TO BE DISCUSSED WITH THE CHINESE SIDE. IT WAS NOTED THAT THE ITEMS TO BE DISCUSSED SHOULD COVER THE AA'S RESPONSIBILITIES, ITS POWER AND THE APPOINTMENT OF MEMBERS. CHEN TOLD THE GROUP THAT

INFORMATION SO FAR.

THE CHINESE SIDE HAD NOT RECEIVED ANY

COURT OF FINAL APPEAL

11.

THE HK ECONOMIC JOURNAL REPORTED TODAY THAT DURING THE CONSTITUTIONAL TALKS, THE CHINESE SIDE HAD REPEATEDLY CRITICISED THE BRITISH SIDE FOR BREACHING PREVIOUS UNDERSTANDINGS REACHED

BETWEEN THE TWO SIDES, CITING THE CFA AS AN EXAMPLE. THE BRITISH SIDE WAS NOW ACTIVELY CONSIDERING TO RAISE THE CFA AGAIN.

ACCORDING TO BRITISH SOURCES, IT WOULD GREATLY FACILITATE THE CONSTITUTIONAL TALKS IF HKG COULD CONVINCE LEGCO TO ACCEPT THE

JLG AGREEMENT ON THE CFA. THE PAPER SAID LEGISLATORS AND THE

LEGAL CIRCLE NOW GENERALLY ACKNOWLEDGED THE IMPORTANCE OF SETTING UP A CFA AS SOON AS POSSIBLE BEFORE 1997 AND HAD SOFTENED THEIR

PREVIOUS ATTITUDE TOWARDS THE JLG AGREEMENT.

PATTEN

YYYY

3

PAGE

UNCLASSIFIED