GR 750

UNCLASSIFIED

MKK 040/2

RECEIVED IN REGISTY NO.

17 JUN 1983

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REGISTRY

Action Taken

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741616

(871)

FM HONG KONG 16984DZ JUN 81

TO PRIORITY FCO

TELEGRAM NUMBER 809 OF 16 JUNE

INFO PRIORITY HONG KONG GOVERNMENT OFFICE LONDON

FOR RICHARD HOARE, HKD, FCO

FROM GODWIN, HAB

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Pren

Reacti

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се

REACTION TO THE U.K. ELECTION RESULT

1. VIRTUALLY ALL NEWSPAPERS AND INDIVIDUALS COMMENTING ON THE RESULT HAVE WELCOMED IT, AS BODING WELL FOR THE TALKS ON HONG KONG'S FUTURE AND FOR HONG KONG'S ECONOMY. WHAT FOLLOWS THEREFORE CONCENTRATES ON LESS FAVOURABLE REACTIONS.

2. MOST COMMENTATORS CONSIDER THAT THE U.K. GOVERNMENT CAN NOW

Future?

MAINTAIN A STRONG POSITION IN THE NEGOTIATIONS WHICH WILL RESULT Capud to PS.

IN AN OUTCOME FAVOURABLE TO HONG KONG. HOWEVER, TIN TIN DAILY AND TIN FUNG DAILY CONSIDER THAT THE GOVERNMENT'S STRENGTH WILL HARM THE TALKS BY ENCOURAGING INTRANSIGENCE, A VIEW SHARED ON TV BY ANTHONY ROWLEY (FEER) AND T.L. TSIM. MISS LIU YIU-CHU (LEGAL ADVISER TO THE BANK OF CHINA) THOUGHT THE U.K. GOVERNMENT WOULD NOW TAKE A MILDER LINE ON 1997.

3. THE MAJOR LEFT-WING PAPERS HAVE REFRAINED FROM DIRECT COMMENT ON THE RESULT, THOUGH THEY PUBLISHED (APART FROM AGENCY REPORTS) AN NCNA COMMENTARY FROM LONDON ANALYSING THE REASONS FOR THE RESULT AND STRESSING SINO-BRITISH LINKS AS A MAJOR ELEMENT OF CONSERVATIVE FOREIGN POLICY. (THIS COMMENTARY WAS TAKEN UP BY FINANCIAL DAILY AND HK DAILY NEWS, WHICH PREDICTED THAT IMPROVED ECONOMIC RELATIONS WOULD LEAD TO RECONCILIATION OF POLITICAL DIFFERENCES BETWEEN THE TWO COUNTRIES). THE NEW EVENING POST ON 11 JUNE CARRIED A CHINA NEWS SERVICE ACCOUNT OF A PEOPLES' DAILY COMMENT MENTIONING ECONOMIC ACHIEVEMENTS OF THE PAST THREE YEARS AS A MAJOR FACTOR IN THE ELECTION, AND NOTING THAT NATO WOULD BE STRENGTHENED BY THE RESULT.

Сориа

4. ON ECONOMIC MATTERS, MOST COMMENTATORS FROM BUSINESS, INDUSTRY AND ACADEMIA CONSIDER THAT THE RESULT WILL LEAD TO RECOVERY IN THE UK ECONOMY, WITH BENEFITS FOR HONG KONG, AND THAT THE DOLLAR WOULD STRENGTHEN. HOWEVER, ROWLEY (FEER) THOUGHT THERE WAS NO (NO) EVIDENCE THAT A TORY GOVERNMENT WAS GOOD FOR HONG KONG'S TRADE. 5. THE APPOINTMENT OF SIR GEOFFREY HOWE AS FOREIGN SECRETARY IS SEEN BY SEVERAL COMMENTATORS AS NOT (NOT) HAVING MUCH IMPACT ON THE 1997 TALKS, SINCE MRS THATCHER HAS BEEN TAKING AN ACTIVE PART.

PS; Mi Luc Mr Guffawd

Mr Donald

THE

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