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1.

The attached text of an article about the recent visit to Hong Kong by CPPCC Standing Committee member and adviser to CASS, Qian Junrui, makes interesting reading. Qian's remarks which were published in Wen Wei Po on 14 November were picked up by one or two British newspapers, principally the Financial Times of 16 November.

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2. Much of what Qian says about the reasons for Hong Kong's fili success to date is on familiar lines, though I note that he inmal seems to play down a little Hong Kong's existing role describing it as a 'comparatively' important international financial centre and a 'relatively' developed capitalist city and port.

3. He goes on to make a criticism that we have heard before: that industry has been neglected in Hong Kong. He takes the view that during the transition period, which he regards as being between now and 1997, the British authorities should do all they can to develop Hong Kong's industry thus enabling the territory's economy to be more stable and prosperous.

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4. Qian also refers to his talk in Hong Kong with the US Consul-General, Levin. The line taken by the Americans, as reported by Qian, is helpfully bullish and full of confidence.

5. Qian goes on to admit that while grave mistakes have indeed been made in the past in the course of China's socialist construction, China has kept its word, and its present policies will remain unchanged for a long time to

come.

6. At the end of the article Qian touches on elections in Hong Kong: "representatives elected by the Hong Kong compatriots themselves," whe expanded on in an article which appeared in 'The Wide Angle' magazine a couple of days later in which a local delegate to the CPPCC mentioned three alternative proposals for elections of one kind or another in Hong Kong after 1997. We have commented separately on this, as well as on recent remarks by Ji Peng Fei.

شاء الله

Nikkorela

HOGISTA

23 November

CODE 18-77

ARCHIVED

28 NOV 1983

W Morris

Hong Kong Department.

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CM30/a

CONFIDENTIAL

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