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SHOULD NOT MISINTERPRET THESE AS CONCESSIONS BY THE CHINESE SIDE AND COME TO THE WRONG CONCLUSION THAT THEY COULD PUT FURTHER PRESSURE ON CHINA. MR LU NONETHELESS REITERATED CHINA ADOPTED A SINCERE ATTITUDE TOWARDS THE TALKS, AND URGED THE BRITISH SIDE TO DO THE SAME. HE STRESSED THE TWO SIDES HAD TO BUILD UP MUTUAL TRUST BEFORE A SATISFACTORY AGREEMENT COULD BE REACHED AND IMPLEMENTED.
14.
IN REPLY TO A QUESTION ON THE RECENT HKG ANNOUNCEMENT TO MERGE THE YAU TSIM AND MONGKOK DISTRICT BOARDS. CHINESE FOREIGN MINISTRY SPOKESMAN WU JIANMIN SAID THE BRITISH SIDE SHOULD STOP MAKING STATEMENTS OR TAKING ACTIONS WHICH MIGHT DISTURB OR UNDERMINE THE ONGOING TALKS. ON THE OUTLOOK FOR THE FIFTH ROUND OF TALKS, MR WU REAFFIRMED THAT CHINA WAS SINCERE ABOUT THE TALKS AND HOPED THAT BOTH SIDES WOULD STRIVE TO MAKE PROGRESS ON THE BASIS OF THE ''THREE CONFORMITIES''.
15. LEE WAI-TING OF NCNA HK BRANCH CRITICISED (11.6) THE BRITISH SIDE FOR 'PETTY TRICKS' IN RESPONSE TO THE SERIES OF POSITIVE MEASURES THE CHINESE SIDE HAD TAKEN RECENTLY. HE HOPED THE BRITISH HKG WOULD NOT DO SIMILAR THINGS BEFORE AND AFTER THE FIFTH ROUND OR THE TALKS MIGHT BREAK DOWN.
NEW AIRPORT
16. CHEN ZUO'ER OF HKMAO STATE COUNCIL TOLD A HK DELEGATION (3.6) THE CHINESE SIDE HOPED THAT THE COMING AIRPORT COMMITTEE MEETING WOULD BE A SUCCESS AND THINGS WOULD BE RESOLVED IN ACCORDANCE WITH THE MOU. MR CHEN SAID HK 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 HE HOPED THE LAST GOVERNOR OF HK WOULD BE ABLE TO LEAVE FROM THE NEW AIRPORT.
17. WAH KIU YAT PO (3.6) QUOTED SOURCES AS SAYING IN THE THIRD FINANCING PROPOSAL IT WAS 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 PROJECT. THE ITEM OF CALLABLE EQUITY WOULD THUS BE ELIMINATED. THE LEVEL OF LOANS TO BE RAISED BY THE PAA AND THE MTRC WOULD BE REDUCED TO 10 BILLION DOLLARS. MING PAO UNDERSTOOD THE CHINESE SIDE FELT THE NEW FINANCING PACKAGE WAS HEADING TOWARDS THE RIGHT DIRECTION, BUT THERE WERE STILL TECHNICAL DETAILS TO BE CLARIFIED.
18.
THE PAPERS IN PROMINENT COVERAGE NOTED (5.6) THE CONCLUSION OF
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