CONFIDENTIAL
HKB 012/1
105.
060030 MDLIAN 9881
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 1492
OF 110245Z MAY 89
INFO PRIORITY PEKING, UKREP JLG HONG KONG
101
YOUR TELNO 986: BASIC LAW: VISIT OF MAINLAND DRAFTERS
1. RE PARAGRAPH 3 OF TUR, LU PING WAS ADDRESSING THE HONG KONG GENERAL CHAMBER OF COMMERCE ON CPG/SAR RELATIONSHIP IN THE BASIC LAW, WHEN HE TOUCHED ON THE QUESTION OF CHINESE STATE-RUN ORGANISATIONS IN HONG KONG. LU SAID CPG WOULD DRAW UP GUIDLINES TO STOP MAINLAND-OPERATED FIRMS ''VIOLATING THE CAPITALIST RULES OF THE GAME IN HONG KONG. LU DID NOT ELABORATE ON WHAT THE GUIDELINES WOULD BE BUT HE MENTIONED THAT IT WOULD BE DIFFICULT TO INCLUDE THOSE GUIDELINES IN THE BASIC LAW. IT MIGHT BE FOR THIS REASON THAT SOME NEWSPAPER REPORTS HAD MENTIONED LEGISLATION FOR THE CONTROL OF THESE MAINLAND ORGANISATIONS.
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2. LU WAS TRYING TO REASSURE THE HONG KONG PUBLIC, AND LOCAL INVESTORS IN PARTICULAR, THAT CHINA WOULD CRACK DOWN ON MALPRACTICES AMONG SOME CHINA-BACKED ENTERPRISES. SINCE THESE ORGANISATIONS ARE STATE-OWNED, OUR ASSESSMENT IS THAT THE CHINESE WOULD NOT NEED TO GO TO THE LENGTH OF LEGISLATION. ADMINISTRATIVE CONTROL IS PROBABLY -WHAT THEY HAVE IN MIND.
WILSON
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DISTRIBUTION
51
ΜΑΙΝ
48
.HONG KONG AGREEMENT
.(RESTRICTED)
LIMITED
HKD
HD/FED
RESEARCH (FE)
ADDITIONAL
3
MR EDWARDS LEGAL ADVISERS MR WHOMERSLEY LEGAL ADVISERS
PUSD
PS/LORD GLENARTHUR
PS/MR EGGAR
MR GILLMORE
MR MCLAREN
MR FIFOOT HKD
1
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