CODE 18-77
UNCLASSIFIED
13
Reference
(i) when US interest rates headed downwards (ii)
immediately by at least 2%.
(d) Abolition of 10% withholding tax on Hong Kong dollar deposits.
Papers commented enthusiatically on "comeback" of both Hong Kong dollar and Hang Seng Index on 16 June. This saw biggest advance on Hong Kong Stock Market this year.
(COMMENT:
ESID's assessment at this stage is that both "recoveries" represent improvement on previously poor positions rather than any significant recovery.)
5. Death of Liao Chengzhi, (Polipuro member, Director of state
Council offices for Hong Kong and Macao and for overseas Chinese affairs) 10 June, (Hong Kong telno 801).
(a) Leading item in communist press 10 June.
(b) Most independpapers printed assessments of Liao's achievements
and his role in formulating China's Hong Kong and Macao Policyes.
(c) Differing opinions on importance of his contribution but:
(d) General agreement that his death would leave unaffacted China's
stance on 1997.
6. Reaction to UK election results,
(Hong Kong telno 809)
(a) Results generally welcomed as auguring well for talks on Hong
Kong's future and for her economy. But:
(b) Two papers thought the Government's strength would harm talks
by encouraging intransigence.
(c) Major left-wing papers stressed Sino-British links as major
element of Conservative foreign policy.
(d) Several papers though appointment of new Foreign and Commonwealth
Secretary would have little impact on talks because the PM herself was actively involved.
7. Hong Kong Assication's Dragon Boat Dinner, London, 15 June.
Coverage given to:
(a) Miss Lydia Dunn's (Chairman Hong Kong Trade Development Council Corporation, and Unofficial EXCO member) optimism that British and Chinese Governments would formulate acceptable arrangements for Hong Kong's prosperity and stability.
(b) Similar optimism expressed by former Trade Minister Peter Rees.
(We are seeking a transcript of this speech)
(c) Swire Group's director's belief that the concern of Hong Kong
resident was to carry on their living without interference.
UNCLASSIFIED
18.
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