TNAG-1247-FCO40-1561-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 30

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FM HONG KONG 071023Z JUN 83

TO ROUTINE F CO

TELEGRAM NUMBER 771 OF 7 JUNE

INFO HONG KONG GOVERNMENT OFFICE LONDON, PEKING

FUTURE OF HONG KONG : PRESS COVERAGE

TOP COPY

MKK040/2

RECEIVED H. REDESERY NO. 51

13 JUN 1983

DESK OF INDEX

ZHAO ZIYANG'S STATEMENT IN HIS REPORT ON THE WORK OF THE GOVERNMENT TO THE NPC THAT CHINA WOULD RECOVER SOVEREIGNTY

OVER HONG KONG AT THE OPPORTUNE TIME AND TAKE APPROPRIATE

MEASURES TO MAINTAIN ITS PROSPERITY'', IS GIVEN WIDE COVERAGE

IN TODAY'S PRESS. MOST PAPERS DRAWING ON A CHINA NEWS SERVICE

(CNS) DESPATCH NOTED THAT THIS WAS THE FIRST TIME THAT THE

SUBJECT OF RECOVERING SOVEREIGNTY HAD BEEN RAISED IN CHINA'S

MOST AUTHORITATIVE FORUM. AN EDITORIAL IN THE COMMUNIST WEN WI

PO STATED THAT IT WAS CHINA'S UNEQUIVOCAL POLICY TO REGAIN

SOVEREIGNTY WHILST MAINTAINING PROSPERITY. THE QUESTION NOW

WAS HOW TO RECOVER AND ADMINISTER HONG KONG WITHOUT CAUSING

EXCESSIVE DISRUPTION SO THAT PROSPERITY COULD CONTINUE.

2. REFERRRING TO ZHAO'S STATEMENT THAT SOVEREIGNTY WOULD BE

RECOVERED WHEN THE MOMENT WAS ''OPPORTUNE'', BOTH THE FINANCIAL

DAILY AND WAH KIU YAT PO BELIEVED THAT THE MOMENT HAD NOT YET

ARRIVED AND THAT ZHAO'S STATEMENT CONTAINED NOTHING NEW.

HOWEVER, THESE PAPERS NOTED THE OMISSION OF A REFERENCE TO THE

MAINTENANCE OF 'STABILITY'' WHICH THEY INFERRED WAS AN INDICATION

THAT CHINA MIGHT RECOVER HONG KONG WITHOUT TAKING INTO ACCOUNT

ITS CONTINUED STABILITY.

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3. THE CONTINUED PRESSURE ON THE HONG KONG DOLLAR EXCHANGE RATE

AGAINST THE U.S. CURRENCY HAS STIMULATED FURTHER EDITORIAL AND

OTHER PRESS COMMENT. AN EDITORIAL IN THE INDEPENDENT MING PAO

REFUTED THE ARGUMENT THAT THE HONG KONG DOLLAR'S DECLINE WAS DUE

LARGELY TO THE LOCAL ECONOMIC RECESSION AND THE STRENGTH OF THE

U.S. CURRENCY. IT TOOK THE VIEW THAT HONG KONG'S UNCERTAIN

POLITICAL FUTURE WAS THE MAIN CAUSE, AND THAT PEKING'S FREQUENT

PRONOUNCEMENTS ON THE FUTURE DID LITTLE TO DISPEL RESIDENTS GLOOM

SINCE THE CHINESE PROPOSALS DID NOT MEET THEIR WISHES.

4. ECONOMIC THEMES HAVE BEEN FURTHER COVERED BY THE HONG KONG

JOURNALISTS PRESENTLY IN SHANGHAI (WEBB'S TELELETTER OF 6 JUNE

TO MORRIS). TODAY'S REPORTS COVERED AN INTERVIEW GIVEN TO THEM BY THE MAYOR OF SHANGHAI, WANG DAOHAN. WANG STRESSED THE

COMPLEMENTARY NATURE OF HONG KONG'S AND SHANGHAI'S ECONOMIES AND

SAID THAT BOTH CITIES SHOULD BEGIN NOW TO STUDY THEIR RELATIONSHIP

AFTER 1997 WHEN CHINA WOULD HAVE REGAINED SOVEREIGNTY OVER HONG

KONG. HE UNDERSTOOD THAT SOME BUSINESSMEN WERE WORRIED ABOUT THE

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