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Some of the independent papers mentioned that the statement was the first written assurance by China that it would maintain HK's prosperity. A number of reports also said the local journalists had tried without success to arrange a meeting with senior Chinese officials. The visit was arranged by the All-China Journalists' Association. Members of the delegation are from 19 local newspapers (SCMP, Standard, Star, Wah Kiu, Sing Tao, Ming Pao, Sing Pao, Oriental Daily, Economic Journal, Financial Daily, HK Daily News, Express, Tin Tin Daily News, Centre Daily News and the left-wing Wen Wei Po, Ta Kung Pao, New Evening Post, HK Commercial Daily and Ching Po). Local offices of Xinhua and China News Service are also represented in the group.
The representative from Oriental Daily News also reported that during the visit of the HK delegation of professionals led by Mr. Allen Lee, Mr. Liao Chengzhi had called off a meeting with members of the group after the Governor's TV interview and the reported statement by Lord MacLehose. He said Mr. Liao cancelled the meeting under the excuse that he was not well to avoid giving an impression that the remarks which he would have made in the talks would be regarded as an official reply to the statements by Sir Edward Youde and Lord MacLehose.
In another story OD reported that Mr. Li Xiannian was likely to become the President of China - a post which had not been filled for some time while Mr. Liao Chengzhi would become Vice-President. Mr. Deng Xiaoping would step down as Chairman of the CPPCC and be succeeded by Madam Deng Yingzhao, wife of the late Chinese premier,
Mr. Zhou Enlai.
2.
HK DOLLAR:
The sustained weakness of the HK dollar prompted the general manager of the HK Branch of the Bank of China, Mr. Jiang Wenqui, to make a statement which was reported prominently by Wen Wei Po and Ta Kung Pao on May 26. Mr. Jiang called for abolition of the 10 pc withholding tax on HK dollar deposits. The slide of the HK dollar would harm HK's prosperity and local residents would suffer, too. He denied that the slump of the HK dollar was due to an erosion of confidence over HK's future. He said there were firmer indications on the 1997 question. The interest rate rise would not do HK any good. It would deal a heavy blow to our commerce and industry and would impede normal economic activities. The Government's positive non-intervention policy as asserted by the Financial Secretary was applicable only when there was self-regulation in the market. The Government should have a rethink on whether this policy would suit the new situation now emerging. He blamed the slide of the HK dollar on a small number of speculators who created ripples in the foreign exchange market by capitalising on the strength of the greenback. Such activities should be curbed.
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