TNAG-1247-FCO40-1561-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 10

CONFIDENTIAL

4. THERE HAS BEEN SOME FURTHER SPECULATION ABOUT THE CONDUCT OF THE NEGOTIATIONS. THE FINANCIAL DAILY (INDEPENDENT) ON 15 JUNE QUOTED ''SOURCES CLOSE TO THE CHINESE AND BRITISH GOVERNMENTS''

AS SUGGESTING THAT FORMAL DIPLOMATIC TALKS BETWEEN THE BRITISH

AND CHINESE GOVERNMENTS WOULD RESUME NEXT MONTH. THE REPORT ALSO SUGGESTED THAT AGREEMENT HAD ALREADY BEEN REACHED IN PRINCIPLE ON THE ROLE TO BE PLAYED BY THE BRITISH GOVERNMENT DURING THE TRANSITION PERIOD AND ON THE NATURE OF THE HONG KONG GOVERNMENT AFTER SOVEREIGNTY HAD REVERTED TO CHINA. THE BRITISH SIDE WOULD INITIATE A POLICY OF LOCALISATION OF SENIOR CIVIL SERVICE POSTS. THE SCMP CARRIED A SIMILAR ARTICLE ON 16 JUNE, BUT CLAIMED NO SPECIFIC SOURCES.

5. THE WEN WEI PO ON 17 JUNE CARRIED A COMMENTARY WHICH SOUGHT TO REFUTE THE ARGUMENTS MADE BY THE YOUNG PROFESSIONALS DELEGATION IN THEIR MEMORANDUM TO THE EFFECT THAT SOCIALIST AND CAPITALIST SYSTEMS COULD NOT EXIST SIDE BY SIDE. THE COMMENTARY REFERRED TO CHINA'S OPEN DOOR ECONOMIC POLICIES AND SUCCESSFUL IMPORTATION OF CAPITAL AND TECHNOLOGY FROM THE WEST, AS WELL AS TO THE CREATION OF THE SPECIAL ECONOMIC ZONES AS PROOF THAT DIFFERENT SYSTEMS

COULD CO-EXIST IN ONE TERRITORY. IT ALSO QUOTED EXAMPLES FROM CHINA'S PAST, POINTING TO THE EXISTENCE WITHIN CHINA OF FOREIGN CAPITALISM, NATIONAL CAPITALISM AND FEUDALISM IN THE CHING DYNASTY AFTER THE OPIUM WARS, AND EVEN REFERRED TO THE COEXISTENCE OF SLAVERY AND A PRIMITIVE COMMUNE SYSTEM DURING THE SHANG AND ZHOU DYNASITES (1600 B.C. - 256 B.C.).

YOUDE

FUTURE OF HONG KONG

LIMLUND

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ED/PLANNING STAFF HD/PUSD PS

PS/LADY YOUNG

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SIR J BULLARD

MR GIFFARD

MR DONALD MR WRIGHT

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COPIES TO

SIR I SINCLAIR LEGAL ADVISER MR BURROWS LEGAL ADVISERS

MR ROBERTS

MR MARTIN

MR FLOWER

NEWS D

ASSESSMENTS STAFF CABINET OFFICE

PUSD

NO 10 DOWNING STREET

MR COLES

SIR A PARSONS #

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