CONFIDENTIAL

126123

MDHIAN 0896

5.

SING

OTHER UNNAMED CHINESE OFFICIALS WERE QUOTED BY WAH KIU, PAO AND THE HK ECONOMIC JOURNAL AS SAYING THAT THE NEW POLICY WAS A MAJOR CHANGE IN THE CIVIL SERVICE SYSTEM AND THE CHINESE SIDE SHOULD BE CONSULTED. SOME SAID THAT THE NEW POLICY WAS IN BREACH OF THE JD AND AGAINST THE PRINCIPLE OF ''HK PEOPLE RULING HK''

6.

THE PEKING PRESS WAS REPORTED TO CARRY TWO REPORTS ON THE NEW

POLICY.

7. YANG YAUYONG AND SHU JIANPING OF NCNA CALLED ON HARBINSON ON 3 AUGUST. WE ARE REPORTING THE MEETING IN A SEPARATE TELEGRAM.

LEGISLATIVE COUNCIL

8. THE LEGCO PUBLIC SERVICE PANEL CRITICISED THE GOVERNMENT FOR

THE NOT CONSULTING LEGISLATORS BEFORE MAKING THE ANNOUNCEMENT. CHAIRMAN, TAM YIU-CHUNG (DAB) SAID THAT THE SUDDEN CHANGE OF POLICY WOULD DRASTICALLY AFFECT THE CIVIL SERVICE AND THE TRUSTWORTHINESS OF THE GOVERNMENT WAS CAST IN DOUBT. CHEUNG MAN-KWONG CUDHK), WAH-SUM (LIBERAL PARTY) AND EMILY LAU (INDEPENDENT) WARNED THAT THE MOVE WOULD DISTORT THE LOCALISATION POLICY AND HIT MORALE.

9.

LAU

BOTH UDHK AND THE LIBERAL PARTY WERE REPORTED TO RAISE OBJECTION TO THE NEW POLICY. UDHK SUGGESTED THAT THERE SHOULD BE FREEZE PERIOD OF THREE TO SIX MONTHS ON THE NEW MEASURES SO THAT FULL CONSULTATIONS COULD BE CARRIED OUT WITH THE LEGCO, CIVIL SERVICE GROUPS AND THE PUBLIC. ALLEN LEE OF THE LIBERAL PARTY SAID THE GROUP WAS AGAINST THE PRINCIPLE OF THE NEW POLICY.

PRESS COMMENTARIES

10. THE CHINESE NEWS AGENCY, IN A SIGNED COMMENTARY, SAID THAT THE NEW POLICY IN EFFECT WAS EQUIVALENT TO THE ABOLITION OF THE LOCALISATION POLICY. IT WOULD UNDERMINE THE STABILITY OF THE CIVIL SERVICE AND THREATEN THE SMOOTH TRANSITION OF THE CIVIL SERVICE SYSTEM. THIS COMMENTARY WAS PICKED UP BY MANY LOCAL PAPERS.

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THEY

11.

TA KUNG PAO AND WEN WEI PO HIT OUT AT THE NEW POLICY ARGUED THAT THE NEW POLICY WAS IN CONFLICT WITH THE LOCALISATION POLICY AND THE ''HK PEOPLE RULE HK'' PLAN. IT RAN COUNTER TO THE JD AND BL. IF EXPATRIATE CIVIL SERVANTS CONTINUED TO DOMINATE THE DIRECTORATE RANKS, IT WOULD BE DIFFICULT FOR CHINESE CITIZENS TO TAKE SECRETARY POSTS. THE REAL MOTIVE OF THE BRITISH WAS TO

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