TNAG-1246-FCO40-1560-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 84

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These features were beneficial to HK and would not deepen the confidence crisis. The change of China's attitude showed that Beijing understood that pre-empting the diplomatic talks would produce adverse effects undermining HK's prosperity and stability. The Financial Daily said editorially two good signs emerged from the meeting. (1) Views were exchanged candidly in a cordial atmosphere. Mr. Liao said the difference between Beijing and HK was not great and there should be more contacts. (2) China was more cautious and would not express its views lightly. This showed that Chinese officials realised that, before an agreement was reached, disclosure of information would be to the disavantage of the talks. The paper likened the talks to a football game in which extra time would defintely be needed after the final whistle. Though there might be boring moments in the match, HK people, as spectators, should be patient because there should be an outcome eventually. The paper also noted that both sides were striving to, win the match under the slogan "friendship and competition are equally important.”

English-language comment: The SCMP quoted Mr. Lau saying that he had been told by Mr. Liao that Chinese officials were concerned about the viability of the HK economy if the British connection was severed. Mr. Lau said Chinese officials were now considering ways to back up the HK dollar as an independent international currency to maintain the territory's prosperous overseas trade; Mr. Liao told him he was aware of the situation of the local dollar and the problems which might arise if it was separated from Sterling. Mr. Liao said the plan for HK people to administer HK was on the drawing board, but it was too complicated to be revealed at this stage. The Chinese had already forwarded proposals to Britain, but had yet to get a response. The Standard quoted Mr. Lau saying he felt the Chinese had now adopted a more flexible attitude in the handling of the HK problem.

The SCMP reported a telephone conversation it had with Mr. Lau, who said the impression he obtained from two hours of talks with Mr. Liao was that HK people should be optimistic. He said Mr. Liao told him that the ball was now in the British court and the Post said international news agencies interpreted this as indicating that China had made some proposals on the future of HK and was awaiting a reply from Britain. The British embassy in Beijing gave a routine 'no comment'. The Standard included the news that five opinion papers had been presented to Mr. Liao; among the proposals made by the Kuk was one urging a transitional period before Beijing regained HK's sovereignty, but Mr. Chan Yat-sun said details of the Kuk's proposals were still confidential. Mr. Liao who spoke in Cantonese during the meeting described himself as half a HK person; his mother was born here and he had lived in HK for quite some time during his youth. The Standard said diplomatic analysts cautioned that public statements by Chinese leaders on the HK question were sometimes made for tactical propaganda reasons and the British would not necessarily agree with Mr. Liao's views. The Ta Kung Pao Weekly Supplement, which appeared on January 13, attributed the remark about the ball being in, Britain's court to Mr. Liao. Mr. Lau Wong-fat was quoted saying the meeting was very encouraging and the gist of what Mr. Liao had told them would be published in due course.

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