TNAG-1245-FCO40-1559-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 127

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STATEMENTS BY OFFICIALS:

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In an interview with an American TV station, the Financial Secretary, Mr. John Bremridge, said local residents had recovered their rationality and confidence in HK. This was indicated by the Hang Seng Index which had risen over 30 percentage points in the past three months.

He envisaged that the years after 1997 would see HK, Shenzhen and Guangzhou develop into a major international financial and light industrial conurbation. The next 100 years in HK were going to be very interesting and exciting because HK's development would be closely linked with Shenzhen and Guangzhou in the same way as New York- Philadelphia or Yokahoma-Kawasake-Tokyo. The Hong Kong Commercial Daily and Wen Wei Po described Mr. Bremridge's remarks as far-sighted and unbiased. Wen Wei Po noted that, if British politicians were equally far-sighted, the question of Hong Kong's future could be solved easily.

Later in the week, a senior Government official reiterated that the Sino-British

talks on Hong Kong's future would result in a settlement acceptable to the people of Hong Kong. A massive brain-drain was unlikely. Local residents were still confident about Hong Kong's future. He confirmed that three unofficial Legislative Councillors would visit China at the invitation of Beijing, but they would go in their private capacity, and not as Legco members. On reports that an Executive Councillor had been invited to join the Chinese People's Political Consultative Conference (CPPCC), the official said in theory members of Legco and Exco could not serve two governments at the same time.

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BRITAIN MAKES PROPOSALS:

Quoting sources close to the Chinese Government, the HK Economic Journal said Britain had put forward a highly confidential paper containing proposals about HK's future to China via its embassy in Beijing last October. The document mainly dealt with measures to maintain HK's prosperity and stability and did not touch on the sovereignty question, or on proposals of exchanging sovereignty rights for administrative control. Britain insisted that the diplomatic talks must be conducted without any pre-requisites. The sources also said that, during preliminary contacts with the Chinese vice-foreign minister, Mr. Zhang Wenjin, the British Ambassador, Sir Percy Cradock, had hinted verbally that a new agreement should be signed between the two countries whereby China's sovereignty over HK would be recognised by Britain in exchange for Britain's continued rule here on expiry of the NT lease. Beijing did not reply until late January when Mr. Yao Guang told Sir Percy, also verbally, that the proposal was not acceptable to China. It was reported that Britain was unhappy that China had delayed giving a reply for three months and Beijing had not kept the talks under confidentiality. China wanted to know first who would succeed Sir Percy before making a decision on whether Mr. Yao Guang would be appointed China's chief negotiator.

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