CONFIDENTIAL
6.
MR. SCHULTZ VISITS HK:
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The American Secretary of State, Mr. George Schultz, visited HK from 8 to 10 February during which he had talks with the Governor on HK's future. Mr. Schultz did not talk to local newsmen but told the American press party accompanying him that HK's future was for China and Britain to work out. The US had considerable interests here and hoped a satisfactory solution could be worked out to promote HK's stability and prosperity.
The Financial Daily and the HK Daily News said in editorials that the US might play the role of mediator. The former said it would be under the tacit consent of both Britain and China, while the latter speculated the request to mediate might come from Britain through the Governor-in-Council in HK if such need arose. The Financial Daily also quoted a report in the 13 December issue of "Business America" published by the American Commerce Department saying the opening up of SEZ's and South China Sea oilfields would bring business opportunities to HK which would also continue to play the entrepot role in China's external trade.
On 16 February, Kung Sheung Daily News quoted the Washington Times saying that the US Government had been asked by major American firms with interests in HK, including Citibank and the Bank of America, to ensure that their investments here were protected. The report said about 50 American banks and 600 firms had set up offices in HK and it was their common wish to see HK's present capitalist system continue.
The three English-language papers covered the remarks of Mr. Shultz in inside or back-page coverage. The SCMP headline was: "Shultz not drawn on HK's future", noting that he said it was "a good thing" everybody had going here and he though it was a good thing to keep going. Mr. Shultz was reported by agencies to have made the comment to reporters covering his 12-day tour of Japan, China, South Korea and HK. The Standard reported him also saying the future of HK was for China and Britain to work out, as did
the Star.
7.
CHINESE OFFICIALS TOLD TO SAY LESS:
A Central News Agency despatch from Taipei said NPC Vice-chairman. Mr. Liao Chengzhi, had been criticised for his remarks on HK's future, particularly his ball game metaphor which had irritated Mr. Deng Xiaoping and Mr. Hu Yaobang. This explained why Mr. Liao had refused to talk to the press when he opened the White Swan Hotel in Guangzhou earlier this month. It was also reported that Beijing had drawn up guidelines for cadres when making comments on HK's prospects. One instruction was that approval must be obtained from the authorities before they could talk openly about the 1997 question.
CONFIDENTIAL