TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 167

WAVERING CONFIDENCE.

5. MARTIN LEE EXPRESSED CONCERN THAT HU'S RESIGNATION WOULD HAVE

ADVERSE EFFECTS ON THE CONFIDENCE OF HONG KONG PEOPLE. HE SAID THAT, ALTHOUGH THE ONE COUNTRY, TWO SYSTEMS POLICY ENSURED THAT THE CHINESE LEADERS WOULD HANDLE HONG KONG MATTERS DIFFERENTLY FROM ''DOMESTIC MATTERS, THIS DID NOT STOP PEOPLE FROM WORRYING THAT THE CHANGE OF LEADERSHIP WOULD BRING ABOUT THE CHANGE OF BASIC CHINESE POLICIES TOWARDS HONG KONG. LEE URGED THE PEOPLE OF HONG KONG TO STAND FIRM ON THE INTRODUCTION OF POLITICAL REFORMS WHICH

THEY BELIEVED TO BE SUITABLE AND NECESSARY FOR HONG KONG. HE SAID

HONG KONG PEOPLE NEEDED A GOOD SYSTEM UNDER WHICH ANY CHANGES OF

POLICY OR LEADERSHIP HERE OR IN CHINA WOULD NOT (NOT) JEOPARIDSE THE STABILITY AND PROSPERITY OF HONG KONG.

6. LEGCO MEMBER CONRAD LAM SAID THAT THE RESIGNATION INDICATED

THE STRENGTH OF CONSERVATIVE FORCES'' IN CHINA, WHICH WOULD HINDER THE DEVELOPMENT OF DEMOCRACY THERE. HE SAID IT WOULD DEFINITELY

AFFECT CONFIDENCE IN HONG KONG, BECAUSE HONG KONG WAS HOPING TO

HAVE A DEMOCRATIC AND LIBERAL SOCIETY, WHILE CHINA WAS MOVING BACKWARDS. LAM SAID THAT RECENT DEVELOPMENTS IN CHINA WERE MORE IMPORTANT THAN THE CHOICE OF HONG KONG'S NEW GOVERNOR. LEGCO MEMBER

ANDREW WONG SAID THAT, WHILE THE SYSTEM IN HONG KONG WAS MOVING ALONG A HEALTHY COURSE, HU'S RESIGNATION SHOWED THAT CHINA'S SYSTEM WAS NOT AS GOOD AS HONG KONG'S. HE SAID THE PEOPLE OF HONG KONG DID

NOT HAVE MUCH CONFIDENCE IN CHINA'S SYSTEM.

7. LAWRENCE MILLS (FEDERATION OF HONG KONG INDUSTIRES) SAID HU'S RESIGNATION MIGHT CAUSE HESITATION AMONG INVESTORS IN THE SHORT

TERM. BUT IN THE LONG TERM, HONG KONG'S ATTRACTION TO OVERSEAS INVESTORS WOULD NOT (NOT) BE AFFECTED. THE CHAIRMAN OF MEETING POINT ENVISAGED SOME EFFECTS ON HONG KONG, BUT BELIEVED THEY WOULD NOT

(NOT) BE TOO GREAT AS ZHAO ZIYANG WOULD CONTINUE WITH THE OPEN POLICY. THE EDITOR OF BAI XING MAGAZINE SAID THAT THE RESIGNATION MIGHT FURTHER WEAKEN THE CONFIDENCE OF HONG KONG PEOPLE IN THE FUTURE AND TRIGGER A GREATER OUTFLOW OF CAPITAL. DR JOSEPH CHENG (CHINESE UNIVERSITY) = -2 5£3 43'80, -589, -1

-' ''VERY DRASTIC'. HE

BELIEVED IT WOULD CAUSE JITTERS IN HONG KONG OVER THE WAY THE

CHINESE LEADERSHIP OPERATED.

PRESS COMMENTARIES.

8. MANY PAPERS COMMENTED IN THEIR EDITORIALS. ECONOMIC JOURNAL HEDGED ITS BETS. IT SAID ON THE ONE HAND THAT THE RESIGNATION WOULD HAVE FAR-REACHING EFFECTS ON HONG KONG, BUT ON THE OTHER THAT THESE WOULD BE GRADUAL BECAUSE OF THE CLOSE ECONOMIC RELATIONS BETWEEN HONG KONG AND CHINA AND (THE NEED TO PRESERVE) HONG KONG'S STABILITY AND PROSPERITY. MING PAO SAID THE RESIGNATION WOULD GREATLY AFFECT CHINESE ARRANGEMENTS FOR SUCCESSORS TO THE LEADERSHIP AS WELL AS CHINA'S REFORM PROGRAMME. THE EXPRESS FELT THAT, WHILE ONLY TIME WOULD TELL WHAT THE EFFECTS OF THE RESIGNATION WOULD BE ON

Restricted

THE