TNAG-1246-FCO40-1560-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 89

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The SCMP reported Mr. Jenkin's departure for an official visit to China which would include talks on the construction of a nuclear power station. The paper reported that he would try to clinch $6.3 billion worth of business for two British companies and he confirmed that Britain would be prepared to provide credits. He said he would be discussing the part Britain could play in bringing the plant to fruition and added that there was clearly considerable interest in Beijing as a result of discussions with the British companies. He thought it unlikely that letters of intent would be signed yet. He emphasised the very considerable opportunities for trilateral co-operation between China, HK and Britain.

5.

PREMIER ZHAO IN AFRICA:

During his visit to Tanzania, Chinese Premier, Mr. Zhao Ziyang, reiterated at a press conference that HK was an inseparable part of Chinese territory and China would regain sovereignty when conditions were ripe. China would take a series of measures to maintain HK's stability and prosperity. Commenting on this, Ming Pao said editorially that Beijing's basic policy towards HK was to make full use of HK on a long-term basis. It was reported that this policy was laid down by Chou Enlai and was approved by Mao Zedong. HK could contribute a lot to China's modernisation; hence, the criteria in determining whether the conditions were ripe were based not on treaties or any abstract theories, but on national interests. The paper criticised those left-wing commentators who had been "babbling” about national dignity and said in so doing they might act against the real overall and long-term

interests of China.

6.

COMMENT IN GUANGZHOU PAPER:

A commentary in the Yangcheng Evening News published on 10 January in Guangzhou said HK's economic success was not due to British rule, but rather to the hard work of five million Chinese here and support from China. The abundant supply of cheap labour gave HK's exports a competitive edge on the international market and the continued supplies of food stuffs and other commodities kept HK's prices low. HK's success was also due to an inflow of capital from Southeast Asian Chinese in the sixties and seventies. HK's economic slump was due to global recession, the Government's high land prices policy and its inaction to support industry.

The SCMP carried a Reuters despatch from Beijing which said the article appeared to be an attempt to counter a commonly-held view in British circles that HK's economy, based on business confidence, would collapse if China forced London to withdraw completely. A Star leader, while supporting some of the Chinese claims, said that what the Chinese statement did not say was that China needed to sell its food to HK to raise much needed foreign exchange and that the cheap labour was mainly those who had fled China and its politics. HK had thrived because the conditions were right, not because it was British or Chinese or a mixture of both; it was, to coin a phrase, in the right place at the right time.

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