RESTRICTED
12
Russell Spurr on HK's future: Television personality, Mr. Russell Spurr, said both the Chinese and the British were grossly mishandling the question of HK's future; the Chinese had maintained an ominously nationalistic drum beat, regardless of the economic consequences for HK, and paralysis appeared to have overtaken the British side. The people of HK were looking desperately for leadership, but they weren't getting any. He told a Rotary Club meeting that there was not the slightest doubt that HK would revert to China in 1997 and this was a view that most people had begun to accept very recently. Eight months after Mrs. Thatcher's visit to Beijing the situation regarding HK's future remained deadlocked on the sovereignty issue. The British Ambassador to Beijing, Sir Percy Cradock, had called several times on the Chinese in an effort to get negotiations started, only to be politely shown the door. The outcome of the negotiations was pre-determined and confidence was already undermined. The time had come or would come shortly when the Government felt confident enough to take the people of HK into its confidence; it was these people who must eventually digest the fruits of sovereignty. The communists, by contrast, were making full use of the prevailing uncertainties. They seemed determined to ignore the British, appealing directly over their heads to the HK Chinese. The offer Beijing made was difficult to refuse. Local people were for the first time being invited to take over the reins of government once the Colony rejoined the motherland as a special economic zone. Mr. Spurr said once an initial breakthrough occurred on the sovereignty deadlock, urgent steps would have to be taken to make full use of the comparatively brief period before 1997 to smooth a painless path to new ownership. Localisation would have to be speeded up within the ranks of the civil service to ensure that competent Chinese moved into commanding positions within the next four or five years. The Chinese seemed anxious, though, that some foreigners should participate in any future government provided they were HK Belongers and were syınpathetic to the new regime. Directly agreement was reached with Beijing the present Governor should step down to make way for a respected HK Belonger. In the final analysis, Mr. Spurr said, the future of this Colony would not be decided between Beijing and London, but between Beijing and the people of HK.
American trade and investment in HK to continue: The president of the American Chamber of Commerce, Mr. Francis Martin, told a meeting of the Personnel Management Club of the HK Management Association that the flow of American trade and investment to HK would continue to grow, despite the current unwarranted uncertainty over the territory's future. Confidence over HK's future was fragile at present and must be reinforced. However, HK would continue to be one of the best places to do business, with total freedom from exchange controls, a low tax rate and a policy of minimal government interference. He mentioned impediments to a robust economic recovery in HK a weak dollar, and growing uncertainty over our long-term future which was largely unwarranted. The key ingredient which set HK apart from other markets was our traditional resilience coupled with an optimistic outlook and confidence in the future.
Trafalgar Housing: The Asian Wall Street Journal on 12 May contained an item about Trafalgar Housing, saying the company had disclosed it had begun an extensive disposal of assets and asked that trading in its shares be suspended for that day (Thursday). It said
RESTRICTED
No comments yet.
Private notes are available after approval.