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CONFIDENTIAL
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HKS 100/3
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EN IN REGISTRY
TELNO 13
INDO
OF 080757Z MARCH 93
INFO ROUTINE FCO
23 MAR 1993
PERSONAL FOR FINANCIAL SECRETARY
FCO FOR RICKETTS, HKD
YOUR TEL NO 13: BUDGET SPEECH 1993
PA
REGISTRY Action Taken
M
MDLIAN 8827
100/3
ว
1. THE COPIES OF YOUR BUDGET SPEECH REACHED US AFTER OFFICE HOURS ON 4 MARCH. UNFORTUNATELY BECAUSE OF OTHER ALARMS AND EXCURSIONS HERE ON 5 MARCH WE WERE NOT ABLE TO SEND IT ROUND TO CHEN ZUO'ER
UNTIL 6 MARCH.
2. NEXT YEAR IF BAG SERVICES ARE AGAIN UNSUITABLE, YOU MIGHT LIKE TO THINK OF SENDING US BY CLASSIFIED FAX ON BUDGET DAY A SUMMARY OF KEY POINTS FOR DELIVERY THE SAME AFTERNOON.
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HKCB 100/3
HHKB 100/3
RECE!
ISTRY
23 MAR 1993
IND
REGISTRY Action Taken
INFO IMMEDIATE HONG KONG, UKREP JLG HONG HONG
HONG KONG: 1993 BUDGET SPEECH: COMMENT BY MFA SPOKESMAN
SUMMARY
I COMPLAIN ON A PERSONAL BASIS ABOUT THE MFA SPOKESMAN'S COMMENTS ON THE FINANCIAL SECRETARY'S BUDGET STATEMENT.
1.
DETAIL
2.
I TOOK THE OPPORTUNITY OF A CALL ON ZHAO JIHUA ON OTHER BUSINESS ON 5 MARCH TO EXPRESS CONCERN AT THE MFA SPOKESMAN'S PUBLIC COMMENTS ON HONG KONG'S 1993 BUDGET. I HAD SEEN A REPORT OF HIS COMMENTS IN TODAY'S PEOPLE'S DAILY (5 MARCH). I EMPHASISED THAT I WAS SPEAKING PERSONALLY, AND HAD NOT YET RECEIVED INSTRUCTIONS, BUT I EXPRESSED SURPRISE THAT HE SHOULD HAVE BEEN INSTRUCTED TO MAKE THIS KIND OF COMMENT ON A SUBJECT WHICH FELL ENTIRELY WITHIN THE BRITISH GOVERNMENT'S RESPONSIBILITY.
3. ZHAO REPLIED THAT IN PRINCIPLE THE BRITISH SIDE HAD THE RESPONSIBILITY OF ADMINISTERING HONG KONG, BUT DURING THE SECOND HALF OF THE TRANSITION PERIOD MANY MAJOR ISSUES RELATING TO A SMOOTH TRANSITION AND A SMOOTH TRANSFER OF GOVERNMENT REQUIRED DISCUSSION BY THE TWO GOVERNMENTS. ON THESE ISSUES THE CHINESE GOVERNMENT HAD THE RESPONSIBILITY AND THE RIGHT TO EXPRESS ITS VIEWS. THERE WERE MANY SIMILAR ISSUES, ONE OF WHICH WAS THE AIRPORT.
4. I SAID THAT ZHAO HAD MISSED THE POINT. IF THE CHINESE SIDE HAD VIEWS WE WOULD BE HAPPY TO LISTEN TO AND REPORT THEM. CONFIDENTIAL CHANNELS EXISTED FOR JUST SUCH A PURPOSE. MY CONCERN WAS THAT RATHER THAN SPEAK TO US IN PRIVATE THE CHINESE SIDE HAD CHOSEN TO COMMENT PUBLICLY. ZHAO REPEATED THAT THE CHINESE SIDE HAD THE RIGHT TO EXPRESS ITS VIEWS ON MATTERS WHICH HAD A BEARING ON THE FUTURE HKSARG. THE BRITISH GOVERNMENT HAD NOT CONSULTED THE CHINESE SIDE BEFORE HAND. WHY THEREFORE SHOULD THE CHINESE SIDE SEEK TO USE CONFIDENTIAL CHANNELS?
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5. I SAID I HOPED ZHAO WAS NOT SUGGESTING THAT THE FINANCIAL SECRETARY SHOULD HAVE CLEARED HIS BUDGET IN ADVANCE WITH THE CHINESE GOVERNMENT? ZHAO DENIED THIS BUT THEN SAID THAT IN ACCORDANCE WITH THE SPIRIT OF MUTUAL TRUST AND COOPERATION WE SHOULD HAVE CONSULTED THE CHINESE SIDE IN ADVANCE. THIS DID NOT MEAN THAT THE CHINESE SIDE WOULD NECESSARILY VETO THE BUDGET BUT THEY SHOULD HAVE BEEN CONSULTED. I REPEATED THAT ANY CHINESE CONCERNS ON SENSITIVE MATTERS SUCH AS THE BUDGET SHOULD BE RAISED THROUGH THE APPROPRIATE CHANNELS. WE DID NOT EXPECT TO READ ABOUT
THEM IN THE PEOPLE'S DAILY.
6 =
ZHAO REPEATED HIS COMMENT ABOUT CONSULTATION. I SAID THAT HE WAS APPARENTLY UNAWARE THAT THE GOVERNOR HAD IN FACT SENT A MESSAGE TO DIRECTOR LU PING ON A PARTICULAR SENSITIVE PART OF THE BUDGET: HE MIGHT HAVE EXPECTED MORE IN RESPONSE THAN PUBLIC CRITICISM. I HAD NOTHING FURTHER TO SAY ON THIS MATTER. THE EXCHANGE ENDED AT THIS POINT.
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DISTRIBUTION
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.HK FINANCIAL
.(DIALOGUE)
HKD
PUSD//HD
ECONOMIC ADVISERS//HD
ERD//HD
RAD//MR WYE
PS
PS/MR GOODLAD
PS/PUS
SIR J COLES
MR HUM
FED//HD
ADDITIONAL
CAOFF//SIR R BRAITHWAITE CAOFF //MS DL CORNER CAOFF//MR SIBSON
CAOFF //MISS NEVILLE JONES
BANK ENG// MR A CROCKETT
BANK ENG//MR C ELSTON
BANK ENG//MR O PAGE HMT//MR P GRAY HMT//MR JP MCINTYRE
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