TNAG-1249-FCO40-1563-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 189

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FM HONG KONG 160935Z SEP 83

TO ROUTINE FCO

TELEGRAM NUMBER 1371 OF 16 SEPTEMBER

DESK OFFICER

REGISTRY

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Action Taken

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INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON, PEKING,

HK GOVT REPS IN WASHINGTON, CG NEW YORK, UKMIS GENEVA, BRUSSELS

FUTURE OF HONG KONG: PRESS COVERAGE.

1. THE COMMUNIST WEN WEL PO CARRIED AN NCNA DESPATCH DESIGNED

TO

REVEAL THE HYPOCRACY OF THE BRITISH AND HONG KONG GOVERNMENTS PLAYING THE PUBLIC OPINION CARD''. TO THIS END THE DESPATCH QUOTED A TIN TIN (PRO CHINA) EDITORIAL OF 23 AUGUST DECLARING THAT THE HONG KONG GOVERNMENT SOUGHT TO USE PUBLIC OPINION AS A ''TRUMP CARD IN THE NEGOTIATIONS, BUT THAT IN FACT HONG KONG'S CHINESE RESIDENTS WERE ACCOUNTABLE TO CHINA. THE DESPATCH ALSO QUOTED A CENTRE DAILY NEWS EDITORIAL OF 14 SEPTEMBER WHICH SAID THAT NO MATTER WHAT PUBLIC OPINION WAS ON THE MATTER SOVEREIGNTY AND ADMINISTRATIVE RIGHT WERE INDIVISIBLE. FINALLY, IT QUOTED A WIDE ANGLE ARTICLE WHICH REFERRED TO A SURVEY CONDUCTED BY THE NEW HONG KONG SOCIETY LAST OCTOBER CLAMMING THAT TWO THIRDS OF THOSE INTERVIEWED SUPPORTED THE SELF RULE PROPOSITION.

2. THE THREE MAJOR COMMUNIST NEWSPAPERS CONTINUED THEIR CRITICISM OF THE HONG KONG GOVERNMENT'S FAILURE TO INTERVENE IN THE MONEY MARKETS TO SUPPORT THE HONG KONG DOLLAR. THE NEW EVENING POST, AGAIN CHARGED THAT GOVERNMENT'S BUDGETARY, INDUSTRIAL AND COMMERCIAL POLICIES, THE WITHHOLDING TAX ON HONG KONG DOLLAR DEPOSITS, AND THE APPROVED PRICE INCREASES BY THE PUBLIC UTILITIES, ALL HAD AN EFFECT ON THE EXCHAGE RATE OF THE LOCAL UNIT FOR WHICH THE GOVERNMENT SHOULD ACCEPT RESPONSIBILITY. ON THE OTHER HAND, CLAIMED THE NEW EVENING POST, CHINA HAD BEEN SELLING U.S. DOLLARS AND BUYING HONG KONG DOLLARS IN 'AN OBVIOUS MOVE

TO MAINTAIN PROSPERITY AND STABILITY".

3. A LETTER PUBLISHED IN THE WEN WEN PO SAID THAT AFTER 1997 THERE WOULD BE NO RESTRICTIONS PRINTED IN LOCAL TRAVEL DOCUMENTS SUCH AS 'HOLDERS ARE NOT SUBJECT TO PROTECTION FROM CHINA'S CONSULATES'', CONTRASTING THIS TO THE PRESENT STATE OF AFFAIRS.

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