CONFIDENTIAL
a.
'As far as Hong Kong's actual conditions are concerned, we must accurately implement the principles and policies of the Central Committee and State Council on solving the Hong Kong issue; both during the transitional stage before the recovery of sovereignty and after the recovery of sovereignty in the future, appropriate measures will be taken to maintain its prosperity. This accords with the interests of the compatriots and people of all sectors in Hong Kong and also with the interests of the people of the whole country. This is certainly not a temporary expedient but a consistent policy to be sustained. In terms of specific policies, the Central Committee and the State Council have taken into full account the opinions of the compatriots and personalities of various walks of life in Hong Kong; they will respect both history and reality, and proceed from the actual situation in Hong Kong. The specific policies will be very liberal. Everyone can put their minds at rest on that'
Li Jusheng, Second Director of the Hong Kong bureau of Xinhua, said: "In the past year many public figures from Hong Kong, Kowloon and the New Territories have visited the interior of the country and met with principal leaders of the central authorites. They have thus come to acquire a better understanding of the progress the motherland has made as well as the policies of the government. The principle advanced by the central authorities for solving the Hong Kong issue was formulated on the principle of correctly solving problems left over from history by realistic and practical measures in light of the actual conditions of Hong Kong. It is in the interests of all quarters there.
e.
Fei Yimin, publisher of the Hong Kong Ta Kung Pao,said: 'There is no change in the Chinese government's basic policy on Hong Kong. Sovereignty over Hong Kong will certainly be recovered, and there is no margin for discussion on that. How to continue to maintain Hong Kong's prosperity and stability is an issue that the Chinese and British sides can discuss candidly and sincerely. As a resident of Hong Kong, I am full of confidence on this point. We only need to look at the tremendous economic developments in the past five years in Shanghai municipality, many cities in Jiangsu Province, and other places, and then consider how the country will certainly be able to gain new success in the next 10 and more years (in this respect, we only need carefully read Premier Zhao Ziyang's government work report delivered at the first session of the Sixth NPC and listen to the confident speeches of the NPC deputies and CPPCC members from various provinces to predict the country's splendid prospects) and then we will naturally no longer feel dubious over Hong Kong's future. Just think how much more rich and powerful China will be in 10 years time; as far as the central authorities' policy intentions for Hong Kong are concerned, would they fail to provide the Hong Kong compatriots with effective assistance? Would it still be difficult to maintsin Hong Kong's current status as a free port and centre of international finance and world trade?
10
CONFIDENT TAL
/'In setting