CODE 18-77
UNCLASSIFIED
Reference
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(b) Hong Kong Economic Journal quoted 'a veteran political analyst'
as saying that (a) above indicated Chinese elevation of Hong Kong to a higher plane'
(c) Some applauded Zhao's statement's moderate tone though said
it held nothing new.
(d) Others said it reflected China's policy on 1997; the question
now remaining was now to maintain Hong Kong's future prosperity.
(e) Tin Tin Daily News (left of centre) and WEN WEI PO )leading
left wing paper) urged Peking to take immediate steps to safe- guard Hong Kong's prosperity.
3.
Hong Kong Delegates to Chinese People's Political Consultative Conference. (Chinese United Front Organisation)
On this:
(a) Some noted that Hong Kong delegates were not ardent left-wingers
like Hong Kong delegates to NPC.
(b) They hoped these delegates would speak up in support of Hong
Kong's interests.
(c) Hong Kong Daily News wondered if composition of Hong Kong
delegates indicated Peking's recognition of "the status of capitalists".
On Madam Deng Yingchao's (widow of Choo, En Lai) remarks on Taiwan that "under the major premise of the reunification of China everything is negotiable":
(a) Some thought the comments applied also to Hong Kong.
Thus:
(b) they showed that provided sovereignty of Hong Kong went to
China all other issues were negotiable.
4.
Hong Kong Dollar
On the sustained weakness of the dollar 1/7 June (record low of Hong Kong's dollar 7.60 US dollar 1 on 7 June)
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(a) Some papers probed effectiveness of higher interest rates to
shore up the Hong Kong dollar.
(b) Others argued whether Hong Kong dollar weakness was caused by
a crisis of confidence over Hong Kong's future.
(c) On (b) above some (eg Tin Tin Daily News and Wen Wei Po)
argued that real cause of weakness was attributable to the Hong Kong authorities.
(a) Others thought premier Zhao's remarks at the NPC would
execerbate Hong Kong dollar's decline.
Measures advocated to arest slide of the dollar included: (a) Curbing Hong Kong's 'galloping inflation'.
(b) Imposition of foreign exchange control.
(c) Slashing interest rates:
UNCLASSIFIED
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