TNAG-1862-FCO40-2639-Future-of-Hong-Kong-Basic-Law-1989 — Page 112

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063234

MDLIAN 0273

CONFIDENTIAL

FM PEKING

TO PRIORITY FCO

TELNO 815

OF 120234Z MAY 1989

CONFIDENTIAL

HKB 012/1

with

INFO PRIORITY HONG KONG, UKREP JLG HONG KONG

TOP COPY Q DIST ?

100

105

YOUR TELNO 986 AND HONG KONG TELNO 1492 TO FCO: BASIC LAW: VISIT OF MAINLAND DRAFTERS.

1. WE WOULD CONNECT LU PING'S RECENT TALKS IN HONG KONG ON

THE HANDLING OF CHINESE STATE-RUN ORGANISATIONS WITH THE

DISCUSSION HE HAD ON THE SAME SUBJECT WITH DPA ON 2 MARCH IN PEKING (PEKING TELNO 338). THE POINTS MADE ON THE EARLIER

OCCASION ENTIRELY BEAR OUT THE INTERPRETATION IN HONG KONG TUR

BUT ADD SOME USEFUL GLOSSES :

LU PING SEEMED TO HAVE IN MIND A CONSIDERABLE WEEDING-OUT

AND DROP IN THE NUMBER OF ENTERPRISES, NOT JUST A TIGHTENING IN THE MANAGEMENT OF EXISTING ONES:

HE SPOKE OF THIS TASK AS ONE TO BE ADDRESSED BY THE CENTRAL

AUTHORITIES AFTER REPEAT AFTER THE PASSING OF THE BL AND

ONE WHICH ''WOULD TAKE SOME TIME''.

2. THE OTHER OBVIOUS CONNECTION IS WITH THE CENTRAL AUTHORITIES'

ANTI-CORRUPTION DRIVE WHICH HAS TAKEN CHINESE OPERATIONS IN HONG

KONG AS ONE OF ITS FIRST TARGETS. LU PING HINTED PRETTY CLEARLY

TO BRADLEY THAT THE ENTERPRISES WHICH MADE LEAST EFFORT TO ADAPT

TO HK CONDITIONS WERE ALSO THE LEAST EFFICIENT ALL-ROUND AND THE

MOST PRONE TO TRY TO SALVAGE THEMSELVES BY CORRUPTION.

3. WE AGREE WITH HONG KONG TUR THAT PRC LEGISLATION WOULD PRIMA

FACIE NOT (NOT) BE REQUIRED FOR THE MEASURES LU PING SEEMS TO

HAVE IN MIND.

DONALD

YYYY

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CONFIDENTIAL