TNAG-1245-FCO40-1559-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 101

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An editor's note said articles which tended to exaggerate the ugly side of HK and conceal the good side had often appeared in Chinese papers in the past few years. They were possibly aimed at (1) exposing the weakness of capitalism; (2) stopping illegal immigration from China by making people in China feel that life was tough in HK; and (3) preparing the ground for reversion of sovereignty.

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LOCAL ACADEMICS IN BEIJING:

The cover story in Pai Shing Semi-monthly of 1 May concentrated on the meeting local academics had with the Director of the Overseas Chinese Affairs Office, Mr. Liao Chengzhi, and his deputies during their recent visit to Beijing. It was disclosed at the meeting that the Governor, Sir Edward Youde, could not take part in the Sino-British talks as a represen- tative of HK and could only join the negotiations as a member of the British team. The academics were also told politely that HK residents would not be allowed to take part in the talks either, because they were considered to be part of China's great family and could, therefore, put their views across any time they liked through other avenues. One of Mr. Liao's deputies, Mr. Li Hou, said China would announce the detailed plan for HK at a specified time in the future and the mini-Constitution would spell out the plan in more concrete terms than those already made known. China hoped Britain would co-operate during the transitional period (which had already begun) by appointing Chinese residents as Deputy Governor and Deputy Chief Secretary in preparation for the takeover. Mr. Li said it would be fine if the British people would co-operate in maintaining HK's prosperity. If they were uncompromising, however, China might change its proposition and timetable to take over HK. When asked whether China would allow an elected element in Legco, Mr. Li reportedly gave no reply. Officials of the Overseas Chinese Affairs Office also disclosed that the mini- Constitution would be drawn up by a committee through consultation and public debate ⚫ before being submitted to the National People's Congress for approval. They also said

China would consider giving preferential treatment to imports from HK as a measure to help the territory overcome its current recession and, in addition, the Bank of China would help local industry. HK people were defined as those who had stayed here for seven years, supported the reversion of sovereignty to China, but were against HK's independence. They must also accept that the People's Republic of China was the only legitimate government of China and must be patriotic whether or not they supported communism and socialism.

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PRESS LINES:

During the week the HK dollar fell to a new low of $6.985 against the greenback. A number of independent papers, including the HK Economic Journal, Ming Pao and HK Daily News, said the slump of the local unit was due largely to erosion of public confidence in HK's future. In a leader on 6 May, the Economic Journal suggested that a high-powered delegation led by the Governor, with the Financial Secretary and Secretary for Monetary Affairs as members, should go to Beijing to explore ways of propping up the local unit.

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