CONFIDENTIAL

85

126123 MDHIAN 0896

HUA 016/1

I

CONFIDENTIAL

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FM HONG KONG

L2 AUG 1993

TOP COPY

TO DESKBY 03120OZ FCO

TELNO 1284

Q DIST?

OF 031058Z AUGUST 93

INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

LOCALISATION POLICY

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CHINESE AND PUBLIC REACTIONS

SUMMARY

1. THE NEW POLICY WAS ANNOUNCED AND A PRESS RELEASE WAS ISSUED ON 30 JULY. EXTENSIVE COVERAGE AND COMMENTS BY THE MEDIA ON THE ANNOUNCEMENT AND SUBSEQUENT BACKGROUND BRIEFINGS. STRONG REACTIONS FROM CIVIL SERVICE GROUPS. SO FAR LU PING AND SEVERAL NCNA OFFICIALS HAVE COMMENTED ON THE NEW POLICY.

DETAIL

THE CHINESE SIDE

2. IN REPLY TO QUESTIONS, HKMAO DIRECTOR LU PING SAID THAT OVERSEAS OFFICERS WHO WERE GIVEN LOCAL CONTRACTS WOULD NOT BE ELIGIBLE FOR THE POSTS OF PRINCIPAL OFFICIALS IN THE SAR GOVERNMENT. HE SAID THE LOCALISATION ISSUE WAS BEING DISCUSSED BY THE JLG, ADDING THAT THE CHINESE SIDE WOULD LIKE THE PACE OF LOCALISATION TO BE INCREASED. THE NEW POLICY WOULD BE STUDIED TO SEE WHETHER IT WAS IN CONFLICT WITH THE LOCALISATION POLICY.

3.

NCNA VICE-DIRECTORS ZHENG GUOXIONG AND ZHANG JUNSHENG, ON DIFFERENT OCCASIONS, SAID THAT BOTH THE JD AND BL CONTAIN PROVISION ON THE CIVIL SERVICE SYSTEM. ANY MAJOR CHANGES SHOULD BE DISCUSSED WITH THE CHINESE SIDE. THEY NOTED THAT THE CHINESE SIDE HAD NOT BEEN CONSULTED ON THE NEW POLICY. ZHANG ALSO QUERIED THE MEANING OF ''TEMPORARY MEASURES'' AS USED TO DESCRIBE THE NEW POLICY.

4.

AFTER A MEETING WITH REPRESENTATIVES FROM THE SENIOR NON- EXPATRIATE OFFICERS' ASSOCIATION (SNEOA) AND THE HK CHINESE CIVIL SERVANTS' ASSOCIATION (CCSA), LI WEITING, ASSISTANT TO NCNA DIRECTOR, REPEATED WHAT ZHANG JUNSHENG HAD SAID. THE HK ECONOMIC JOURNAL QUOTED MR LEE AS SAYING THAT THERE WAS STILL NO SINO- BRITISH CONSENSUS ON THE DEFINITION OF A ''HK PERMANENT RESIDENT THUS THE NEW POLICY WAS IN VIOLATION OF THE BL AND THAT THE CHINESE HAD THE RIGHT NOT TO RECOGNISE THE EXPATRIATE OFFICERS' PERMANENT RESIDENT STATUS AFTER 1997.

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