3.
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4.
The outcome of the NPC meeting on the Hong Kong issue looks likely to be a decision to establish a "Work Committee" or "Work Organisation" for the Preparatory Committee of the Special Administrative Region, which under the Basic Law will be formed in 1996. Latest reports indicate that the NPC Resolution will not make clear when this Work Committee should be established. A number of Chinese spokesmen have said that it will not have an operational role pre-1997, eg in vetting contracts and franchises.
Reactions in Hong Kong
The
5. Since the breakdown of talks about talks, and the publication of the Resolution, it has become clearer that there is strong support in the community for talks. mood is also swinging in favour of:
delaying introduction of the legislation into LegCo at least until after Easter to avoid a final break with the Chinese. ExCo were unanimous on this: even Emily Lau has said she could accept it;
Not allowing the precise form of representation for Hong Kong Government officials to be a stumbling block.
The latest South China Morning Post opinion poll showed the community evenly split on whether the Governor was right to publish the Bill; one third in support, one third opposing, and remainder "don't knows".
British Business Interests
6.
The threat by the Chinese Minister of Foreign Economic Relations and Trade against British business has now been followed by the first evidence of contracts being steered away from British companies. So far none are major orders, although there are reports of threats to some big contracts. Lord Fanshawe has told us that the insurance brokers, Sedgwicks, had been told that they would be allowed to operate as the first international insurance brokers in Peking: but were now being
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