UNCLASSIFIED

063032

MDLIAN 8126

17. A number of papers (16.9) noted an article in the Far Eastern Economic Review said Zhou Borong would be the deputy head of the PLA in HK. Zhou had studied in the Royal United College. About 3000 to 4000 PLA officers were undergoing training in Guangzhou in preparation for their stationing in HK after 1997. It was expected the number would gradually reach 6000.

Polls

The

18. Papers noted (15.9) the number of people who felt optimistic about the talks had reached a record low. Only 37% of 556 respondents were optimistic, with 32.5% feeling pessimistic. survey also found the popularity of the Governor stood at 57 points.

19. The SCMP reported (20.9) a poll showed 60% of the 465 respondents did not want the Governor to break off from the talks, while 27% believed he should do so. 52% said the Governor should give as much detail as possible about the progress of the negotiations in his policy address, but 37% preferred him not to say anything which might jeopardise the talks. The Governor's popularity level was at 5.7 on a scale of one to ten.

South China Morning Post

20. The purchase by Malaysian born businessman Kwok Hock Nien Kerry Group of a 34.9% holding in SCMP from Rupert Murdock's News Corporation was prominently noted (13-14.9). Speculation that Kwok's purchase was being backed by mainland interests were denied by Kerry Media director who said the decision was made solely for business reasons.

PATTEN

YYYY

ΜΑΙΝ

57

.HK POLICY

HKD

PUSD

FED

LEGAL ADVISERS//MS BARRETT

DISTRIBUTION

65

NTCD

PLANNERS

RAD

PS

PS/MR GOODLAD

PAGE

5

UNCLASSIFIED

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