UNCLASSIFIED
154662 MDLIAN 3541
HK PEOPLE AND DOUBTED THEY WOULD STAND BY HK IN THE FACE OF PRESSURE FROM PEKING. 93 PER CENT BELIEVED THEIR DUTY WAS TO PUT HK INTERESTS FIRST EVEN WHEN THEY CLASHED WITH THOSE OF THE CHINESE GOVERNMENT.
23. A SURVEY COMMISSIONED BY THE HK ECONOMIC TIMES (11.2) COVERED ABOUT 1,000 PEOPLE WHO WERE INTERVIEWED OVER THE TELEPHONE ON THREE DIFFERENT OCCASIONS DURING OCTOBER TO DECEMBER LAST YEAR. RESULTS SHOWED 43 PER CENT OF THE RESPONDENTS WERE SATISFIED WITH THE GOVERNMENT'S PERFORMANCE IN OCTOBER AND 32 PER CENT IN DECEMBER. THE REASON CITED BY THE RESPONDENTS FOR THEIR SATISFACTION OF THE GOVERNMENT IN DECEMBER INCLUDED A MORE OPEN/DEMOCRATIC GOVERNMENT AND THE PERFORMANCE OF THE GOVERNOR. THE PRIMARY REASON LISTED FOR DISSATISFACTION WAS THE FAILURE TO EFFECTIVELY BUILD UP GOOD SINO-BRITISH RELATIONS. IT ALSO FOUND PEOPLE'S SATISFACTION WITH LEGCO ALSO DROPPED DURING THE PERIOD. THE MAIN REASON FOR DISSATISFACTION WAS ARGUMENT AND NO CONSENSUS AMONG LEGCO MEMBERS.
SINO-US RELATIONS
24. PAPERS WIDELY NOTED (10.2) A REPORT RELEASED BY THE ATLANTIC COUNCIL AND THE NATIONAL COMMITTEE ON US/CHINA RELATIONS. IT URGED THE CLINTON ADMINISTRATION TO WORK TOWARDS A NORMAL RELATIONSHIP WITH PEKING THROUGH A POLICY OF ''VIGOROUS, INTELLIGENT ENGAGEMENT''. THE REPORT WARNED A DETERIORATION IN US/CHINA RELATIONS WOULD DANGEROUSLY DESTABILISE HK AND PROD PEKING INTO ADOPTING A MORE HOSTILE MILITARY POSTURE IN ASIA AND BEYOND. IT FURTHER WARNED THAT ANY PUNITIVE U.S. ACTION TO REDUCE TRADE WITH CHINA WOULD SIMILARLY REDUCE PEKING'S INCENTIVES FOR RESTRAINT IN DEALING WITH HK. IT SAID US'S OVER-RIDING INTEREST CONCERNING HK'S TRANSFER TO CHINA WAS THAT A CHANGE-OVER SHOULD SERVE THE INTERESTS OF PEKING AND HK PEOPLE AS WELL AS U.S. INVESTMENTS IN HK. IT WAS NOTED IN AN APPARENT REFERENCE TO THE ON-GOING EFFORTS BY CONGRESS TO IMPOSE HUMAN RIGHTS AND OTHER CONDITIONS TO THE RENEWAL OF CHINA'S MFN TRADING STATUS, THE REPORT WARNED THAT THE U.S. SHOULD AVOID LETTING ONE ISSUE DOMINATE BILATERAL RELATIONS.
PAY TV
25. THE HEAD OF THE ECONOMICS DEPARTMENT OF NCNA HK, CHEN KEQIANG, SAID (11.2) THE BRITISH SIDE HAD EARLIER INFORMED THE CHINESE SIDE OF THE PAY TV APPLICATION AND THE CHINESE SIDE WERE STUDYING THE MATTER. MR CHEN SAID THE FRANCHISES FOR PAY TV STRADDLED 1997 AND HAD TO BE CONSIDERED AND ENDORSED BY THE
3
PAGE UNCLASSIFIED