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The SCMP reported that the man who heads the British team in the discussions with China, Sir Percy Cradock, returned to Beijing on Wednesday after an overnight stop here. The Post said Sir Percy and Lord Belstead were both in HK last week "for top-level talks" on Sino-British relations and the territory's future with the Governor, Sir Edward Youde. The paper said attempts to clarify speculation that Britain and China might have called a temporary break in the discussions proved fruitless.
The Standard reported the "pause" in the talks, but said they were expected to resume before the end of the year according to informed London and Beijing sources. The sources also said the negotiations had not got very far, but they had always expected a long, drawn-out process. On the statement that China would accommodate British interests after 1997, political analysts were quoted saying this did not make clear whether business interests or something broader was meant. It was a good sign, however, that the words were more cautious than those used by other Chinese leaders. The British view was that some form of continuing British role was needed if the colony's prosperity and stability were to be maintained.
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PREMIER ZHAO'S STATEMENT CONFIRMED:
The managing director of Hopewell Holdings, Mr. Gordon Wu, confirmed on his return from Beijing that Chinese Premier, Mr. Zhao Zhiyang, had assured that China would not take back HK before 1997 and the capitalist system here could continue after sovereignty reverted. In a lengthy interview with the SCMP, Mr. Wu said Mr. Zhao told him that HK could enter into commercial contracts with foreign parties independently after 1997. Under this principle, HK could set up its own congress, elect a government and administer itself. Mr. Zhao said it was unacceptable for Britain to administer HK after 1997 and it was necessary to change the flag. Mr. Zhao quoted Mr. Deng Xiaoping as suggesting that HK could be called "China-HK". The Premier was also aware of the 1997 jitters in HK, but said the outflow of funds was not as large as reported. He also said HK was a better place
to invest in than Southeast Asian countries and Taiwan.
The HK Daily News described Mr. Zhao's remarks as sensible and appropriate and said they would do more in stabilising HK than alarmist statements made by "Beijing visitors" from HK. The paper felt that the time would not be ripe to handle the HK issue until after 1997 when China's new Constitution and its open door policy had made its impact.
The SCMP also reported that Premier Zhao had told Mr. Wu that he and other property developers accompanying him should continue investing in HK and they would not suffer. China would never nationalise investment from HK in China and this policy would be long-term and stable. China's policy was for HK people to administer HK when it regained sovereignty over the territory. China had a responsibility to the people of HK. When Mr. Wu asked if he would be a class enemy after 1997, Mr. Zhao replied that there would be no class struggle here. Mr. Wu told the Post that based on information he had gathered in Beijing he was confident
about HK's future.
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