TNAG-1863-FCO40-2643-Future-of-Hong-Kong-Basic-Law-1989 — Page 23

UNCLASSIFIED

FM HONG KONG

TO DESKBY 231330Z FCO

TELNO 3535

OF 23095OZ OCTOBER 89

AND TO IMMEDIATE PEKING

UNCLASSIFIED

103035

MDHIAN 1036

METING BETWEEN DENG XIAOPING AND SIR Y.K. PAO ON 28 SEPTEMBER:

HONG KONG PRESS REPORTS

1.

THE HONG KONG PRESS HAS RECENTLY REPORTED ON WHAT IT HAS CLAIMED WAS SAID AT A MEETING BETWEEN DENG XIAOPING AND SIR Y.K.

PAO ON 28 SEPTEMBER. DETAILS ARE AS FOLLOWS.

2. THE HK ECONOMIC JOURNAL REPORTED ON 20 OCTOBER THAT DENG MET SIR Y.K. PAO PRIVATELY ON 28 SEPTEMBER. DURING THE MEETING DENG SAID THAT CHINA'S POLICY WAS THAT, APART FROM DEFENCE AND FOREIGN AFFAIRS, THE REST COULD BE LEFT TO HK PEOPLE TO MANAGE AND THAT THIS WAS THE ULTIMATE BOTTOM LINE FOR CHINA TO

EXERCISE ITS SOVEREIGNTY ON HK UPON ITS REVERSION TO CHINA. HE

SAID THAT IT WAS OBVIOUSLY UNACCEPTABLE FOR SOME HK PEOPLE TO ATTEMPT TO MAKE DEMANDS UPON CHINA AFTER THE JUNE 4 INCIDENT. DENG SAID THAT CHINA MUST INTERVENE IF AND WHEN HK BECAME A BASE FOR TOPPLING THE CHINESE GOVERNMENT OR THE SOCIALIST SYSTEM. IN THE CIRCUMSTANCES OF CONTINUING EMIGRATION, PEOPLE COULD LEAVE AS THEY WISHED AS LONG AS HK COULD MAINTAIN A CERTAIN DEGREE OF PROSPERITY AND THOSE WHO HAD LEFT COULD RETURN TO HK.

3. IN A COMMENT THE PAPER WONDERED WHY THE MEETING WAS NOT REPORTED BY THE CHINESE MEDIA. QUOTING SOURCES, IT SAID THAT JIAN ZEMIN TOLD SIR Y.K. IN SHANGHAINESE AT A MEETING ON SEPTEMBER 30 THAT QUOTE IF YOU TAKE A TOUGH STAND WITH US, WE WILL TAKE A TOUGHER ONE UNQUOTE WHEN HE WAS COMMENTING ON ATTEMPTS BY WESTERN COUNTRIES TO EXERT PRESSURE ON CHINA BY USING THE

PEKING INCIDENT.

4. THE ECONOMIC JOURNAL REPORT WAS PICKED UP BY THE HK STANDARD

ON 21 OCTOBER IN A PROMINENT FRONT PAGE ARTICLE HEADLINED QUOTE BEHAVE YOURSELF DENG WARNS UNQUOTE WHICH SAID THAT CHINESE SOURCES HAD CONFIRMED DENG'S REMARKS.

5.

EDITORIALLY, SING TAO JIH PAO ON 22 OCTOBER SAID THAT IF

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UNCLASSIFIED