TNAG-1318-FCO40-1722-Future-of-Hong-Kong-views-and-involvement-of-the-European-Co-1984 — Page 25

Mr. Pay

UNCLASSIFIED

Reference.....

Mrfisher That you

H. 2311,

134)

Germano Dutch

Some of this

incaret grasp of facts

based on

Mrs Priest HKD

A useful roundup concentratie of necessity

avičlee

n

press evicted. convaine synopsis & antichel in Frankfurter

Allgemeine' and 'NRC Handelsblad I do with me have

written to Bonn / The trayne. of 2/4.

FUTURE OF HONG KONG PRESS COVERAGE IN EC, OCTOBER 1984

1. Only the first twenty three paragraphs of the European Press Review (folio 129 below) sent to us by the Hong Kong Government Office in Brussels are of relevance. It seems unlikely that this is a comprehensive survey of the European or EC press as only German and Dutch articles are covered in any quantity. There are one or two articles from Denmark and Italy, but virtually no others.

2.

Coverage of the Hong Kong question seems to have been muted in October. The report summarises about half a dozen articles on the draft agreement itself. These were fairly evenly divided between those expressing moderate support for the pact and those highlighting the existence of continuing uncertainty over the future, in particular with regard to the reliability of China's pledges and the dangers of political upheaval in the PRC. None of the articles appear to have been enthusiastically in favour or strongly against the agreement. The provisions on nationality came in for some criticism, however.

3.

More interest seems to have been focussed on the commercial implications of the agreement, and here the verdict was slightly more positive. Some reports stressed opportunities for business investment afforded by the guarantee of a long-term capitalist Hong Kong. Others quoted specific firms as saying that they had no plans to pull out of the territory and every confidence in its future prosperity. On the other hand, the confidence of the large corporations with their "bolster of foreign assets" was contrasted with the pessimism of small companies. Another article described the reaction of the economy to the agreement as disappointing, whilst the proposed establishment of a joint Hong Kong PRC International Investment Company is said to have sparked fears in the territory of Chinese interference in Hong Kong's financial independence. One Italian newspaper draws attention to the contrast between the confidence of the business community and the "illogical and visceral doubts" of the ordinary people of Hong Kong.

-

20 November 1984

HKK 040/20

RECEIVED IN REGISTRY 2 6 NOV 1964

Sman 2%,

Simon Fisher

Hong Kong Department

CODE 18-77

*FFICER

PA

REC

Action Taken

RY

入

UNCLASSIFIED