TNAG-1246-FCO40-1560-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 110

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CONFIDENTIAL

The HK Economic Journal, in an editorial, detected a worrying trend. Instead of talking about business and investment opportunities, people these days were chit-chatting about the political future of HK and their own enjoyment. These conversations were non-productive from the economic viewpoint.

Commenting on Mr. R.C. Lee's interview with the Asian Wall Street Journal, Kung Sheung Daily News said, despite the positive remarks made by Mr. Lee on the "self-rule" option, 60 per cent of population who had sought refuge from communist rule in China were not convinced that Beijing would keep all systems unchanged upon reversion. of sovereignty.

Ming Pao agreed editorially that fleeing was not the best policy. It said HK's prospects would still be good if people chose to stay on and continued to work for their families' interest and HK's future. After all there were not too many people who could actually flee. Even if they succeeded in running away, they would be confronted with a lot of problems.

Tin Tin Daily News called at the weekend for the setting up of an advisory committee on HK's future so that views on the territory's prospects could be collated and reflected properly to the authorities concerned. The paper noted divergent views had been expressed by various people and some of these remarks were very disturbing and might cause anxiety among the public. They might also confuse the Beijing authorities.

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LOCAL MAGAZINES:

First informal contact made in 1980: Quoting sources in Beijing, the 1 January issue of Pai Shing Semi-Monthly said the Vice Chairman of NPC, Mr. Liao Chengzhi, talked to HK and Macau delegates to the NPC about HK's future for nearly 40 minutes at a dinner party at the Great Hall of the People on 9 December, 1982. The Chinese Ambassador to Britain, Mr. Ke Hua, was also present.

Mr. Liao said the first informal contact about the 1997 issue was probably made in 1980 when he met the former Governor of Hong Kong, Lord MacLehose here on his way home from heart surgery in the United States. At the meeting, Lord MacLehose tried to sound out China's stance and suggested that HK's status should be maintained since about 40 per cent of China's foreign exchange was earned through HK. In reply, Mr. Liao said China made it quite clear that HK was part of Chinese territory and China would take it back when conditions were ripe. Mr. Liao said, under the self-rule proposal, HK people meant both local Chinese and foreigners residing here. He said the decision to regain sovereignty was made by both the party and the Government and was unequivocal. He emphasised his confidence about the future of HK and said China had made all necessary preparations to ensure success in the Sino-British talks. On the other hand, China had made preparations to anticipate undesirable effects that might arise. He concluded that sovereignty must be recovered at whatever cost.

CONFIDENTIAL