TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 76

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CONFIDENTIAL

28.

On Hong Kong, Zhao limited himself to stating that China

would, at an opportune moment, recover sovereignty over the

territory and that she would take appropriate measures to

maintain its prosperity.

Appointments

29. It had been expected that Li Xiannian would be elected

President of the People's Republic. The presidency enjoys no

substantive powers. It is designed rather as a symbol of China

for the outside world. Li is a survivor from Maoist days and

the principal exponent of the now discredited policy of putting

special emphasis on heavy industry. But he is a prestigious

old revolutionary and one who has trimmed sufficiently to sail

with the new leadership. He is also 75 and seriously sick.

His election underlines the theme of unity and continuity,

the tolerance of a broad church, which the reformist group

around Deng Xiaoping apparently now feel confident enough to

propound.

30. It was officially confirmed that the original choice for

Vice President was Liao Chengzhi, the former head of the office

in charge of Hong Kong and Macao. He died however shortly after

the Congress had opened. Ulanfu, his replacement, is not of the

same stature. His appointment is a gesture to China's

nationalities (he is a Mongolian), but he does not have the

CONFIDENTIAL

/connections