TNAG-1247-FCO40-1561-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 74

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Mr. Lo said the sharp depreciation of the exchange rate since last September indicated that investment in HK had become less attractive. He believed the inflow of

short-term funds for interest rate reasons had masked both a substantially increased outflow of longer-term funds and a reduced inflow of such funds.

Commenting on Mr. Lo's speech, Wen Wei Po said it would be uncalled for to hint that the reversion of sovereignty to China would erode confidence because Beijing had already made it categorically clear that they were not going to change HK's systems. It was the policy of the Chinese leadership to maintain a stable political situation both in China and HK.

The Financial Daily viewed Mr. Lo's statement as a piece of advice to China. While the possibility of the "SAR” flourishing could not be ruled out, economically it was always better to keep a rosy picture intact than painting a new picture. A stable transition would be achieved only if there was a smooth hand-over acceptable to both sides.

Also commenting on Mr. Lo's speech, the HK Daily News said the most pressing task now was how to restore confidence. Apart from faith shown by the public, the Government should come up with concrete measures and policies to ensure that HK's prosperity and stability would continue even before the conclusion of the Sino-British talks.

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CALL FOR ELECTED EXCO AND LEGCO MEMBERS:

At the annual general meeting of the Christian Industrial Committee on 27 March, chairman, Dr. L.K. Ding, called for public representation in the Government's decision-making bodies so that people here could shape their own future and achieve the goal of self-governing.

The story was prominently covered by the SCMP, Express, Oriental Daily News and HK Daily News. Several major Chinese papers, including the left-wing Ta Kung Pao, accorded routine coverage.

In his speech, Dr. Ding also ridiculed the Government for holding public opinion in contempt, citing as an example its inaction over the 580 000 signatures collected to protest against the electricity tariff rises of the two power companies. He pronounced the demise of governing by consensus. He also refuted a statement by a senior Government official that all administrative reforms had been completed. He said the District Boards and the UC election by constituencies only marked the start rather than the end of public participation in politics. He also claimed that social progress was no longer psssible under the present government. He envisaged that the decision-making bodies would be open to the public during the transitional period in the next 10 years when appointed members would gradually be phased out by elected members. The self-governing model would be welcomed by China.

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