Circulation : COM, DC, AC/HQ, SAO/HQ, SLO, PO, SA, CLO,file

Mr R. Hoare (Fco).

CHINESE PRESS (EUROPEAN EDITIONS)

REVIEW

A Summary of Reports of Interest

Translation

8th February, 1983

Extract from SING TAO (European Edition) dated 7th February, 1983

"The capitalistic system in HK will not be changed; the existing way of living in HK will not be changed; and the position of HK as an international financial and econ- omic centre will not be changed."

"China must recover the sovereignty over HK; and the prosperity and stability of HK must be maintained."

The aforesaid principles were revealed by the Chinese Ambassador in UK, Mr Ke Hua, as Beijing's policy on the

future of HK.

Mr Ke will leave for China at the end of the month

after completing a tour of four and a half years. Не hosted a spring festival party on February 4 to say good bye to friends in the cultural and commercial circles.

Mr Ke felt that China has an exceedingly favourable future. He admitted that hardship had been caused to the people because of China's mistakes in policy in the 1957 Big Leap Forward and the 'Gang of Four' incident in the 60s. But such errors have now been corrected and in the recent two years, China's politics and economy have moved on the right track. In respect of economic development, agricul- ture has shown a marked achievement over industry.

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