TNAG-1248-FCO40-1562-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 49

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TELEGRAM NUMBER 1124 OF 1 AUGUST

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ALL 1983

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INDEX

REGISTRY Action Taken

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INFO HONG KONG GOVERNMENT OFFICE LONDON (FOR HONG KONG GOVERNMENT REPRESENTATIVES) WASHINGTON NEW YORK BRUSSELS GENEVA

FUTURE OF HONG KONG: PRESS COVERAGE

NOTING THAT THE NEXT ROUND OF TALKS WOULD BE HELD ON 2 AND 3 AUGUST, MOST PAPERS REPORTED THAT THE POLITICAL ADVISER HAD TAKEN LEAVE AND WOULD BE REPLACED BY HIS DEPUTY. THE CHANGE WAS NOT

REGARDED AS SIGNIFICANT.

2. THE ECONOMIC JOURNAL'S (INDEPENDENT) MONTHLY EDITION SAID THAT CONTRARY TO CHINESE ASSERTIONS, HONG KONG WAS REPRESENTED AT THE TALKS BY SIR E. YOUDE WHO PLAYED THE ROLE OF CHIEF NEGOTIATER. THE BRITISH DELEGATION WOULD NOT CONCLUDE ANY AGREEMENT AT THE TALKS WITHOUT EXCO'S ENDORSEMENT.

3. MOST ENGLISH AND CHINESE-LANGUAGE NEWSPAPERS HAVE NOW COVERED A CHINA NEWS SERVICE DESPATCH THAT AMOUNTS TO A RETRACTION OF THE STORY THAT HONG KONG AND MACAU WOULD BE INCLUDED IN A SPECIAL ECONOMIC ZONE FOR THE PEARL RIVER DELTA REGION CENTRED ON GUANGZHOU (MY TELNO 1013). THE GUANGDONG OFFICIAL SAID THAT THE PLAN WAS QUOTE JUST HIS OWN SUGGESTION UNQUOTE AND WAS CONCERNED THAT HIS EARLIER REMARKS MAY HAVE BEEN MISUNDERSTOOD. A REUTERS REPORT OF 31 JULY TOOK THIS LATEST STATEMENT AS AN ATTEMPT TO ALLAY FEARS THAT HONG KONG'S OWN LIVING STANDARDS WOULD DROP WHEN PEKING REGAINED SOVEREIGNTY IN 1997.

4. THE MAIN STORY IN THE COMMUNIST PRESS OVER THE WEEKEND WAS THE PRESS CONFERENCE GIVEN IN PEKING BY XU CHAOLONG OF CHINA INTERNATIONAL TRUST AND INVESTMENT COMPANY (CITIC) AT WHICH IT

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