TNAG-2780-FCO40-3999-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1993 — Page 112

UNCLASSIFIED

FM HONG KONG

TO PRIORITY FCO

TELNO 901

OF 030917Z JUNE 93

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149

126640

MDLIAN 6890

HICC 012/2 RECEIVED IN RECISTRY TOP COPY

4 JUN 1993

DESK OFFICER

REGISTRY

INDEX

PA

Action Takent

INFO PRIORITY PEKING, UKREP JLG HONG KONG

CONSTITUTIONAL DEVELOPMENT: PRESS REPORTS

TALKS

1. QUOTING VARIOUS SOURCES, UNITED DAILY TODAY (3 JUNE) REPORTED THAT THE TWO SIDES HAD BOTH MADE CONCESSIONS AND REACHED A MAJOR UNDERSTANDING IN THE FOURTH ROUND OF THE TALKS: AND THAT DETAILS WOULD BE CONFIRMED AND ANNOUNCED AT THE FIFTH ROUND. THE REPORT SAID THE CHINESE SIDE HAD SKILFULLY PLAYED ITS ECONOMY CARDS TO WIN POLITICAL SUCCESS. IT WAS EXPECTED THAT OUR THIRD PROPOSAL ON THE FINANCIAL ARRANGEMENTS FOR THE NEW AIRPORT WOULD BE ACCEPTED BY CHINA IN PRINCIPLE.

2. THE REPORT ADDED THAT CLEAR PROVISIONS FOR THE 1994/95 ARRANGEMENTS WOULD BE MADE ON THE BASIS OF THE SEVEN DIPLOMATIC EXCHANGES IN 1990. BOTH SIDES HAD MADE CONCESSIONS ON THE NUMBER OF MEMBERS TO BE RETURNED BY DIRECT AND INDIRECT ELECTIONS. THE CHINESE WANTED THE ANNOUNCEMENT OF THE CONSENSUS REACHED TO BE MADE IN THE FROM OF AN AGREEMENT RATHER THAN A MEMORANDUM SO THAT THINGS COULD NOT BE CHANGED. THE BRITISH SIDE, ON THE OTHER HAND, HAD SENT MR GOODLAD TO DISCUSS WITH THE GOVERNOR, EXCO AND LEGCO TO FACILITATE THE IMPLEMENTATION OF THE AGREEMENT.

NEW AIRPORT

3. CHEN ZUO'ER OF HKMAO STATE COUNCIL YESTERDAY TOLD A HONG KONG DELEGATION THAT THE CHINESE SIDE HOPED THAT THE COMING AIRPORT COMMITTEE MEETING WOULD BE A SUCCESS AND THAT THINGS WOULD BE RESOLVED IN ACCORDANCE WITH THE AIRPORT MOU. CHEN SAID THAT HONG KONG NEEDED A NEW AIRPORT, WHICH HAD TO BE BUILT IN A COST- EFFECTIVE WAY AND WHICH SHOULD NOT CAUSE ANY BURDEN TO THE SAR. HE REMARKED THAT HE HOPED THE LAST GOVERNOR OF HONG KONG WOULD BE ABLE TO LEAVE FROM THE NEW AIRPORT.

4. WAH KIU YAT PO QUOTED SOURCES AS SAYING THAT IN OUR THIRD FINANCING PROPOSAL WE HAD SUGGESTED TO PUT 20 BILLION DOLLARS FROM THE PROCEEDS FROM LAND SALES ALONG THE AIRPORT RAILWAY AND ANOTHER 10 BILLION DOLLARS FROM THE RESERVES INTO THE NEW AIRPORT

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