TNAG-1246-FCO40-1560-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 12

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The Financial Daily said the Governor's decision to go to London on the eve of the Urban Council elections on 8 March might indicate something important was in the offing and that the talks might go beyond procedural matters. It speculated that Britain would raise the subject of local residents' wishes which should be respected by both sides. Britain might agree to end its colonial rule here, but the exact date of the withdrawal was open to negotiation.

The Hong Kong Economic Journal in a leader also agreed that the Governor's trip indicated that the matter had now entered a very delicate phase. It noted that Sir Edward had never been very affirmative that he was going to take part in the Beijing talks. This might mean that China was not happy with Britain's decision to get Sir Edward involved. In so doing, Beijing would tacitly approve British rule here which would be against its principle of not recognising the treaties governing Hong Kong.

The Express described the Governor's visit and the decision of Beijing-funded banks to offer loans to small industrialists as good news which would help restore confidence in HK and enhance economic development, while the HK Daily News said the visits of Sir Edward and Sir Percy at the same time were not coincidental. They might indicate that some headway had been made in the talks.

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LOANS FOR INDUSTRY:

The group of 13 Beijing-funded banks headed by the Bank of China announced on 26 February that it would be extending existing loan facilities to small industry on terms similar to those offered by HK Bank and Chartered Bank to help tide them over current difficulties. The story was prominently played up by the left-wing press. A number of papers also quoted Mr. Hwang Jen of the Factory Owners' Association saying that if the need arose the period of repayment could be extended to 30 or even 50 years. This assertion was denied by a spokesman for the Bank of China in a statement on 27 February which said the maximum period for the loan scheme had never been announced and they had not authorised any person to make statements about it.

Wen Wei Po described the offer, which would be even more popular than that of the HK Bank, as timely in the face of the current recession, mounting protectionism and keen competition from other SE Asian countries, and urged the Government to play a role in helping industry. The scheme illustrated the banks' confidence in the future of HK. Ta Kung Pao played up the story together with an interview with the president of the Chinese General Chamber of Commerce, Mr. Wong Kwan Cheng, who criticised the Government for failing to come up with positive measures to help industry. His remark was in line with the editorial stand of the left-wing press commenting on the Budget. In its report, Wen Wei quoted the Chief Secretary saying that he welcomed the move which would contribute to HK's economic development. The Government would maintain its policy of not providing direct aid to industry. The scheme was also welcomed by spokesmen for the CMA and FHKI.

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