DOTUVI-1983 14:00

Chinese Leaders

POLITICAL ADVISOR OFFICE

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F.10

Chinese Prime Minister Li Peng, at a reception for China's National Day, spoke on the question of HK, the media (1.10) reported,

Mr Li said that regardless of changes inside and outside the mainland, the Chinese Governemat would not change the capitialist systems in HK and Macau. He reiterated that HK would not be allowed to become a base for overthrowing the Chinese Government and the communist System.

He said that the Chinese govenemmt would abide by the Joint Declaration and would strive for a smooth changeover of sovereignty and the maintenance of stability and prosperity in HK.

The General Secretary of the Chinese Communist Party, Jiang Zimen, in describing the systems in different countries, said that countries should adhere to their own ways without interfering that of the other countries, the media reported in good coverage yesterday (1.10).

At a meeting with local businessman Sir Y.K. Pao, Mr Jiang reiterated that the open-door policy would not be changed and that if China would make progress in its economy, it would benefit stability and prosperity in HK.

The director of HK and Macau Affairs Office, Ji Pengfei, met delegations of HK businessmen who were attending Chinese National Day celebrations in Peking, the media (1.10) said.

Mr Ji said that the policy of "one country, two systems" was to maintain HK's stability and prosperity. On future political reforms, Mr Ji said that the Chinese were more inclined towards a step-by-step approach. He denied that they were conservative. He maintained that the Basic Law would be for the overall Interest of HK.

On the consultation of the Basic Law. Mr Ji said that it was the consultation period now and it would be nice to have more views, adding that any political models could be put forward.

CONFIDENCE CRISTS

The director of the NCNA HK branch, Xu Jaitun, said that it would not be constructive for some British officials to make hasty comments on his remark that the confidence crisis was caused by the British side before studying his remarks in details, the media (29.9) reported in good coverage.

Mr Xu did not name the British officials concerned. However, a number of papers said that the British officials referred to by him was the FCO Minister with responsibility for HK, Francis Maude, who had earlier commented on Mr Xu's remark on the confidence issue.

Speaking to newsmen at a reception of the Federation of Trade Unions to mark the 40th anniversary of the People's Republic of China, Mr Xu said: "It would be better for some issues to be discussed through diplomatic channels.

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