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7.
NO REFERENDUM:
At a press briefing on 15 March, an unnamed senior Government official said the Government had no intention of holding a referendum to sound out the public on the question of 1997. Existing consultative machinery was adequate and views could be expressed via Umelco or the DBs. He confirmed that the Governor and Sir Percy Cradock had briefed Exco on their return from the London visit. The Government was still studying what role HK could play in South China Sea oil exploration. HK might provide commercial and financial services for the project. Logistics supplies might come from China itself. The Government agreed in principle that it could purchase electricity from China should the Guangdong N-plant be constructed. Close attention would be paid to the safety aspects of the N-plant, he added.
8.
CHANGE IN WORDING:
On 18 March, the Financial Daily observed that in this year's Hong Kong Annual Report there was a significant change in the wording in the first paragraph of the Constitution and Administration chapter. It reads: "Hong Kong is administered by the HK Government and its administration has developed from the basic pattern applied in all British-governed territories overseas. The head of the HK Government is the Governor." The wording in the previous version was: "The British Government's policy towards HK is that there shall be no fundamental constitutional changes for which there is, in any event, little or no popular pressure." It quoted unnamed political analysts as saying the new version indicated that HK's political system might change. He said China's proposals of "HK people to administer Hong Kong", "SAR" and "Chinese as Governor" ran counter to China's established policy of opposing any British attempt to change HK's constitution. Britain might have to make corresponding changes in its policy towards HK. The decision not to build the replacement airport at Chek Lap Kok might stem from this policy change. Editorially, the paper also saw the new version as a departure from Britain's previous undertaking not to introduce constitutional changes in HK. It agreed that changes should come in a gradual manner to minimise the impact on HK as a whole.
9.
2ND ROUND OF TALKS TO BEGIN SOON:
Quoting informed sources in Beijing, the Express said the second round of the Sino-British talks on HK's future would begin later this month. Chinese leaders sincerely hoped that there would be a breakthrough in the negotiations to help maintain HK's stability and prosperity and its status as a free port. The first round of the talks hit snags. because both sides were very firm in their stands. It quoted observers as saying that both Britain and China would try to compromise in Round 2 of the talks. The crisis of confidence here which caused the flight of funds from HK, and the viewpoints expressed by local groups during their visits to Beijing, might have a bearing on China's stand towards the issue.
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