CONFIDENTIAL
(1) would the HK dollar remain an international currency? (2) would HK people exert their strength to bring about change, or would they simply await the outcome of the negotiations? and (3) what group, organisation or political party could represent the HK people, act in their interest and be in their midst? As a long-term prospect, self-rule was an answer most people could accept. The question to be examined was whether the majority of middle and lower class people could be brought to the point where they struggled, strived and hoped for the same. People's confidence could be increased if over the next 14 years efforts were made to improve their quality of life, to increase democratic rights and to fight for participation in politics. If there was no agreement on the people's needs, then people would opt for the status quo out of fear. The introduction of democratic elections to DBs, Urbco and eventually even Legco were or would be a transitional step.
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Ta Kung Pao Weekly Supplement: The Supplement for 3 9 March contained
four articles of local interest. On the Budget, the paper quoted the Federation of Trade Unions saying the tax increases would only add to the burdens of those in the low and middle income brackets. On the Bank of China loan scheme for industry, the Supplement gave no details of the terms, except to say the repayment period would be fixed according to the needs of manufacturers, but not as long as 30 - 50 years as speculated. There was a straightforward report, without comment, of Government's decision not to go ahead with the replacement airport. There was a report of the symposium sponsored by Ta Kung Pao which said it was necessary to revitalise declining manufacturing industries if HK's stability and prosperity was to be maintained between now and 1997.
Shenzhen SEZ: Urbco candiate Dr. Victor Sit said Shenzhen SEZ was now feeling the effects of an unbalanced programme of development that it pursued in its initial stages; in the past two years property development had accounted for 60 pc of total development. Due to lack of experience Chinese officials had been influenced by HK businessmen in the initial stages. These businessmen, by no means the best in HK, had concentrated on property development at a time when HK was enjoying a property boom. Now the Chinese were changing the priorities. He noted the SEZ had a bright future, and would benefit from South China Sea oil exploration.
The deputy mayor of Shenzhen, Mr. Zhou Qiwu, has spoken of an increase in industrial undertakings in the SEZ, attracting more international attention, according to a Standard report on 4 March. There were 1,578 overseas financed projects in the Zone at the end of last month.
The Mitsui Mining Company has signed a $100 million joint venture agreement for a cement works. This is the first Japanese participation in the SEZ.
CONFIDENTIAL