GR 1000

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HIKKC040/2

NECL VED IN NASIO AY 13-P 1083

DESKBY 23093OZ

FM HONG KONG 230845Z SEP 83

TO IMMEDIATE PEKING

TELEGRAM NUMBER 550 OF 23 SEPTEMBER

AND TO IMMEDIATE FCO

INDEX

PA

Terion Palu

LONDON CHATY

SINGAPORE

INFO IMMEDIATE HONG KONG GOVERNMENT OFFICE LOK (FOR PS TO MR LUCE), HK GOVT REPS WASHINGTON, CG NEW YORK, UKMIS GENEVA, BRUSSELS

FUTURE OF HONG KONG: PRESS COVERAGE.

THE MAJOR COMMUNIST PAPERS TODAY REPEATED THE DREARY LITANY OF

ATTACKS ON THE HONG KONG GOVERNMENT FOR PLAYING THE ECONOMIC

CARD'', AND EXHORTATIONS TO THE BRITISH SIDE TO BE SENSIBLE AND

CO-OPERATIVE IN ITS ATTITUDE TOWARDS THE FUTURE. THE NEW EVENING

POST PREDICTED THAT THE HONG KONG DOLLAR WOULD NOT REVIVE IN THE

NEAR FUTURE AND NOTED THAT THE PUBLIC HAD ONLY THE HK AND BRITISH

GOVERNMENTS TO BLAME. TA KUNG PAO CLAIMED THAT THE CHANGEABILITY

OF CHINA'S POLICIES WAS A THING OF THE PAST AND THAT THE ONE

NATION TWO SYSTEMS'' PLAN WOULD WORK SINCE ALL PROGRESS SPRANG

FROM NEW BEGINNINGS.

2. THE NORMALLY PRO LEFT TIN TIN DAILY NEWS APPEALED TO THE PEKING

GOVERNMENT TO SAVE THE HONG KONG DOLLAR. IT SUGGESTED THAT THIS

COULD BE ACHIEVED IF PEKING TOOK OVER THE RIGHT TO ISSUE BANK

NOTES IN EXCHANGE FOR SAFEGUARDS ON BRITISH ECONOMIC INTERESTS,

3. AN NCNA DESPATCH QUOTED A LEADING CHINESE LEGAL EXPERT, A

MR ZANG YOUY AS SAYING THAT IT WAS LEGAL FOR CHINA TO RECLAIM

HONG KONG IN 1997 AND THAT ANY PLAN TO EXTEND BRITISH ADMINISTRATION

AFTER 1997 WOULD NOT BE ACCEPTABLE.

4. ALL PAPERS GAVE EXTENSIVE AND PROMINENT COVERAGE TO THE FIRST

DAY OF THE FOURTH ROUND OF TALKS. THE LEFT WING PRESS LARGELY

CONFINED ITSELF TO FACTUAL REPORTING BUT WEN WE PO PREDICTED

THAT A FURTHER ROUND OF TALKS WOULD START IN TWO WEEKS TIME. THE

PRO COMMUNIST CHING PO SAID THAT THE ATMOSPHERE HAD BEEN

HARMONIOUS BUT THE INDEPENDENT MING PAO BELIEVED THAT THE TALKS

HAD WIDENED THE GAP BETWEEN THE TWO SIDES.

5. NDEPENDENT PAPERS CARRIED A DENIAL BY MISS MARIA TAM OF A

STORY IN YESTERDAY'S ENGLISH LANGUAGE STANDARD TO THE EFFECT

THAT SHE HAD COMPILED A PAPER ON PUBLIC OPINION FOR THE GOVERNOR

TO PRESENT AT THE TALKS.

6. THE INDEPENDENT MAH KIU YAT PO CAME OUT IN SUPPORT FOR THE

FINANCIAL SECRETARY'S CLAIM THAT THE ABOLITION OF THE WITHHOLDING

TAX ON HONG KONG DOLLAR DEPOSITS WOULD NOT ASSIST THE DOLLAR. A

REVIVAL OF THE DOLLAR DEPENDED LARGELY ON PEKING'S ATTITUDE TO

THE TALKS. THE RIGHT WING HK TIMES QUOTED MR JIMMY MCGREGOF

AS SAYING THAT CHINA WAS RESPONSIBLE FOR THE WEAKNESS OF THE

LOCAL UNIT.

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pe (34)

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