TNAG-1248-FCO40-1562-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 5

Page

GRS S00

STRICTED

RESTRICTED

200

TOP COPY

FM HONG KONG 011010Z SEP 83

TO ROUTINE F C O

TELEGRAM NUMBER 1286 OF 1 SEPTEMBER

INFO HONG KONG GOVERNMENT OFFICE LONDON, PEKING,

HONG KONG GOVERNMENT REPRESENTATIVES WASHINGTON, NEW YORK, BRUSSELS AND GENEVA.

Enk

HAK 040/2

10/2

RECEIVED IN REGISTRY 2 SEP 1983

FUTURE OF HONG KONG: PRESS COVERAGE.

DESK OFFICER

INDEX

PA

1. THE LATEST EDITION OF THE MONTHLY POLITICAL MAGAZINE (ZHENG MING) CONTAINS AN ARTICLE BY THE EDITOR WRITING UNDER PEN NAME,

WHICH PURPORTS TO GIVE DETAILS OF A SECRET BRIEFING OF SENOR

CADRES BY DENG XIAOPING ABOUT HONG KONG. ALTHOUGH THE BULK

OF THE REPORTED BRIEFINGS ALONG FAMILIAR LINES, THERE ARE

ONE OR TWO APPARENTLY NEW POINTS:

(A) SMALL NUMBERS OF PLA TROOPS MIGHT BE SENT TO

HONG KONG **FOR DEFENDING THE NATIONAL SOIL!!

(B) THERE MIGHT BE SOME PATRIOTS'' AMONG THE TRADS.

THE ARTICLE ALSO REPORTED DENG AS HAVING REFERRED TO XU J HATUN'S

HIGH PROFILE IN HONG KONG AS PART OF PREPARATORY WORK FOR

TAKING OVER HONG KONG. #T ALSO QUOTED DENG AS SAYING THAT ''ALL ASPECTS OF WORK IN HONG KONG WILL IN FUTURE COME UNDER

THE DIRECT LEADERSHIP OF CHINA''.

2. THIS ARTICLE NG ALREADY ATTRACTING SOME ATTENTION IN THE

INDEPENDENT PRESS. TODAY'S SOUTH CHINA MORNING POST POINTED OUT THAT SOME OF THE REMARKS ATTRIBUTED TO DENG WERE AT VARANCE TO WHAT WAS KNOWN OF CHINESE PLANS FROM THE LARGE NUMBER OF

PUBLIC AND SEMI PUBLIC PRONOUNCEMENTS BY THE CHINESE. THE SCMP

ALSO CAST DOUBTS ON THE RELIABILITY OF ZHENG MING REPORTING.

3. THE ORIENTAL DAILY (MINDEPENDENT) ON 31 AUGUST QUOTED AN UNNAMED

SENHOR OFFICIAL AS SAYING THAT CHINA HAD MADE CLEAR TO THE

BRITISH SIDE DURING THE NEGOTIATIONS THAT BRITA UN MUST ''HAND

BACK''THE HONG KONG DOLLARS 30 BILLION RESERVES TO THE NEW HONG KONG ADMINISTRATION ON REVERSION OF SOVEREIGNTY. THE MONEY BELONGED TO THE PEOPLE OF HONG KONG AND WOULD BE USED TO HELP

MAINTAIN THE EXCHANGE VALUE OF THE HONG KONG DOLLAR. IT WOULD

NOT DO BRINTAIN ANY GOOD TO HANG ON TO THIS MONEY. THIS REPORT

RESULTED IN A NUMBER OF QUESTIONS FROM JOURNALISTS, IN ANSWER TO WHICH THE GOVERNMENT SPOKESMAN TOOK THE STANDARD LINE THAT

THE LEGAL POSITION WAS THAT THE RESERVES BELONGED TO HONG KONG AND POINTED OUT THAT THE EXCHANGE FUND WAS HELD IN A VARIETY

OF CURRENCIES OF WHICH THE STERLING ELEMENT AMOUNTED TO LESS THAN

10 PER CENT.

RESTRICTED

REGISTRY

Action Taker,

CHI219

14.