UNCLASSIFIED

130270 MDLIAN 563

SHOULD BE STATED IN THE BASIC LAW THAT HK MUST NOT BECOME A BASE FOR SUBVERSION AGAINST CHINA.

17.

THE SCM POST (31.10) REPORTED THAT FINDINGS OF A SURVEY COMMISSIONED BY THE PAPER SHOWED THAT SEVEN OUT OF 10 PEOPLE IN HK HAD NO CONFIDENCE THAT CHINA WOULD HONOUR THE BASIC LAW GUARAN- TEEING THE RIGHTS OF INDIVIDUALS AND A SEPARATE ECONOMIC SYSTEM IN HK FOR 50 YEARS AFTER 1997. A TOTAL OF 600 PEOPLE WERE INTERVIEWED IN THE SURVEY.

18. THE ORIENTAL DAILY NEWS (26.10) REPORTED THAT A THREE- MEMBER WORKING GROUP LED BY THE HEAD OF FCO'S HK DEPARTMENT, ALAN PAUL, HAD COME TO HK TO SEEK VIEWS ON THE RIGHT OF ABODE ISSUE FROM SENIOR GOVERNMENT OFFICIALS AND THE PRIVATE SECTOR. IN AN INTERVIEW WITH SING PAO (26.10), MR PAUL SAID THAT THE PURPOSE OF THE VISIT WAS TO GAIN FIRST-HAND INFORMATION FROM PRIVATE ORGANISATIONS ON THE RIGHT OF ABODE ISSUE SO THAT IT COULD BE DECIDED WHAT CATEGORIES OF HK PEOPLE SHOULD BE GIVEN THAT RIGHT.

19.

CHINA WAS NOT WILLING TO USE THE DOLLARS 14.7 BILLION LAND FUND TO HELP THE DEVELOPMENT OF A NEW AIRPORT AND PORT FACILITIES, THE PAPERS (26.10) REPORTED, QUOTING A REUTERS DISPATCH. THE PAPERS SAID THAT ACCORDING TO A CHINESE OFFICIAL WHO WAS CONNECTED WITH PEKING'S MAIN FINANCIAL INSTITUTIONS IN HK, IT WOULD BE A TRAP IF CHINA WAS ASKED TO USE THE FUND FOR THE PROJECTS AS SUCH A COMMITMENT WOULD LEAVE THE FUTURE SAR GOVERNMENT WITH NO FINANCIAL BACK-UP TO MEET EMERGENCIES.

WILSON

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DISTRIBUTION

62

ΜΑΙΝ

59

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

PAGE

NEWS D

PS/MR MAUDE PS/LORD BRABAZON MR GILLMORE MR MCLAREN MR MOSS

4

UNCLASSIFIED

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