RESTRICTED
5. IN THE INDEPENDENT PRESS THE ECONOMIC JOURNAL'S EDITORIAL SAID THAT MANY LOCAL PEOPLE SUPPORTED THE IDEA OF SELF-PULE BUT OPPOSED CHINESE RULE. THE FORMER WAS SIMPLY BEING OFFERED BY CHINA AS A UNITED FRONT PLOY. SIMILARLY, CHINA WAS TRYING TO WIN OVER BRITISH COMMERCIAL INTERESTS IN HONG KONG BY PROMISING TO SAFEGUARD THEIR INVESTMENT. THIS WOULD ENCOURAGE BRITISH BUSINESS TO INFLUENCE PARLIAMENT INTO COOPERATING WITH CHINA. IN THESE CIRCUMSTANCES, THE BRITISH ADMINISTRATION IN HONG KONG WOULD BE PRACTICABLY POWERLESS TO BARGAIN.
6. THE FINANCIAL DAILY SAID THERE WAS VERY LITTLE NEW IN QI HUAIYUAN'S REMARKS BUT CONSIDERED THE BBC STORY MORE SIGN- IFICANT. IT CLAIMED THAT THE BBC WAS FINANCED BY THE GOVERNMENT AND THEREFORE SPOKE AUTHORITATIVELY ABOUT BRITISH QUOTE CONCESSIONS UNQUOTE.
7. IN AN UNCHARACTER ISTICALLY PRO-CHINA TONE, A COLUMNIST IN THE ORIENTAL DAILY ARGUED THAT CHINA HAD ISSUED THE SEPTEMBER 1984 DEADLINE OUT OF A GENUINE AND INFORMED CONCERN THAT THE LOCAL ECONOMY WOULD COLLAPSE IF THE TALKS DRAGGED ON. CHINA FULLY UNDERSTOOD THE IMPORTANCE OF MAINTAINING STABILITY AND PROS- PERITY, SO WOULD NOT DO ANYTHING RASH.
8. THE ENGLISH-LANGUAGE SOUTH CHINA MORNING POST (SCMP) AND HK STANDARD ALONE REPORTED YESTERDAY'S ARTICLE BY ROBERT COTTRELL OF THE FINANCIAL TIMES WHICH ARGUED THAT BRITAIN AND CHINA WERE CLOSE TO AGREEMENT ON HONG KONG'S FUTURE AS A LOCALLY AUTONOMOUS AREA UNDER CHINESE SOVEREIGNTY. BRITAIN WAS NOW QUOTE CONCENTRATING ON CLARIFYING CHINA'S PLAN RATHER THAN OPPOSING IT UNQUOTE. THE SCMP (BUT NOT THE HK STANDARD) SAID THAT COTTRELL'S STORY WAS CONSIDERED IN LONDON TO REFLECT THE FOREIGN OFFICE VIEW OF THE ISSUE.
HADDON - CAVE
FUTURE OF HONG KONG
LIMITED
ED/EKO
ED
COPIES TO: (VIA DISTR. ROOM)
BUCKINGHAM PALACE
PS/LORD PRESIDENT OF THE COUNCIL
PS/HOME SECRETARY
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PS/LORD PRIVY SEAL
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ED/PLANNING STAFF
ED/PUSD
D/HD/PUSD(MR FLOWER)
RESEARCH DEPT(MR WALKER)
LEGAL ADVISER (SIR IAN SINCLAIR)
PS
PS/LADY YOUNG
PSAR LUCE
PS/PUS
SIR J BULLARD
MR GIFFARD
MR DONALD
MR FRIGHT
SIR C TICKELL
RESTRICTED
INDUSTRY
COPIES TO:
(VLA ADR)
NEWS DEPT
MR ROBERTS
MR. BURROWS LEGAL ADVISERS MR COLES NO 10 DOWNING ST SIR A PARSONS
MR MARTIN
11
ASSESSLENT STAFF CABINET OFFICE
MR GOODALL CABINET OFFICE HR BRENNAN
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It