TNAG-2942-FCO40-4218-Future-of-Hong-Kong-nationality-ethnic-minorities-1993 — Page 27

CONFIDENTIAL

12. On 27 July ExCo approved a note for handing to the MFA which would spell out the extent of the JLG workload and the consequences of Chinese non-cooperation. In light of indications that the Chinese intend JLG XXVII to be productive, this idea has been deferred pro tem, although Mr Galsworthy will probably speak informally to Ambassador Guo in the terms of

the note.

Airport Financing

13.

The meeting of the Airport Committee on 4 August made no progress on the financing package. We suggest that the linkage between resolution of the airport issue and agreement on constitutional issues may have been re-established. However the Chinese agreed that revenue from airport island land development should accrue to the Airport Corporation not the SARG.

They did

not agree that the land for the airport railway should be additional to the annual Land Disposal Programme. Hong Kong have now proposed a new form of words on railway land which should provide the Chinese a ladder to climb down, if they want

one.

Nationality Issues

14. At his meeting with Sir John Coles on 29 July, the Governor criticised Home Office handling of immigration

assurances for Hong Kong people after 1997. The Governor

thought it essential that a British Minister should restate the

position set out by Sir Geoffrey Howe to the FAC in 1989 (see attached text).

15.

Home Office have told us not to expect until September a reply to the Minister's letter of 21 July to Mr Wardle on ethnic minorities and war widows. But we predict a standard response.

roundup.GEN

SLM

CONFIDENTIAL