TNAG-1245-FCO40-1559-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 58

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continue to deteriorate, China might consider taking HK back earlier. Apart from repeating some of his previous remarks on how to maintain HK's status quo, Mr. Liao also told the delegation that HK people would still enjoy the right to own assets and property, the right to determine the land premium in the NT when the lease expired in 1997, and the right to decide landing rights at Kai Tak airport.

5.

CHINA'S OIL CONTRACT:

China has awarded its first offshore oil contract to an international group of oil companies led by British Petroleum. At a ceremony in Beijing, the President of the China National Offshore Oil Corporation, Mr. Qin Wencai, and the chairman of BP, Mr. Peter Walters, together with representatives of other members of the consortium, signed the joint venture agreements covering exploration, including development and production activities in any subsequent discoveries. A prominent local businessman, Mr. Richard Charles Lee, was on the board of one of the consortium's member firms.

The joint venture prompted a number of papers to comment. The Financial Daily, together with the left-wing Wen Wei Po and Ching Po, saw the move as a sign of British entreprenuers' confidence in China's modernisation drive and HK's economic prospects. They also interpreted it as yet another guarantee of the territory's continued prosperity. Tin Tin Daily News said the move would lay the foundation for further co-operation between London and Beijing. It also indicated that Beijing had made a friendly gesture towards Britain despite the fact that the Sino-British talks had reached an impasse.

In interviews with the left-wing Ta Kung Pao, Peter Wrangham of HK Bank and Mr. Bill Brown of Chartered Bank shared the view that HK would play an active role in the oil project because of its comprehensive legal framework, communications facilities and

financial structure.

6.

PRESS REPORT DENIED:

On 13 May, Ming Pao Evening News reported prominently that the Sino-British talks would enter a crucial stage next Friday. The Governor, Sir Edward Youde, would go to Beijing soon to take part in the talks as a member of the British team. The report also quoted an unnamed FCO spokesman as saying that Britain would no longer insist on the sovereignty question. This had paved the way for substantive talks to begin. The negotiations would focus on two areas firstly, on ways to maintain HK's prosperity

and stability; and, secondly, on ways to ensure continued Sino-British co-operation on reversion of sovereignty to China. The report, which was based on an article in the 16 May Issue of Wide Angle, was denied by the Government in a statement issued through GIS that evening. The statement said there were no plans at the moment for the Governor to visit Beijing. He would, as already stated, go there when the talks reached the appropriate stage. The newspaper report was not an accurate representation of the state of talks, or of the British position. The Government spokesman said in the statement that, as Lord Belstead had said on his visit to HK last December, people should not be misled by what they heard outside the talks. The only authentic information was that which emerged officially from the talks. The statement also contained a denial by the FCO which said no statement had been made by any official of the FCO or by officials of any other British Government department.

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