TNAG-1899-FCO40-2697-Future-of-Hong-Kong-briefing-1989 — Page 16

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

The negative side is accentuated by recent political happenings such as the

clumsy handling of the Fang incident when President Bush was visiting, and the

even worse handling of the Hong Kong petition to free Dissidents, which shows

just how little the Chinese Government cares as to what sort of impression

they make abroad. In fact, their immediate reaction to any kind of criticism,

that foreigners are interfering in domestic affairs and should keep their

opinions to themselves, does not bode well for the time when Hong Kung becomes

a Chinese domestic affair. But the real negative lies just in these Chinese

domestic affairs, namely, in the last four years while Hong Kong has been

going from strength to strength and like a locomotive has been pulling the

train which enabled Shenzhen and Canton to start climbing the ladder of

economic success, the greater part of China is now worse off than they were

four years ago.

The argument which is going on in China as to why this has

happened, which appears to be mainly between the Secretary of the Party and

the Prime Minister, concentrates on the merits or otherwise of centralisation

and/or planning which in my view completely misses the point.

What has gone wrong in China has very little to do with whether Provinces or

Cities have more economic freedom and whether the individual is allowed to

give entrepreneurial talents free reign. What has gone wrong is that the

Chinese leadership thought they could use an entrenched nepotistic Cadre

system to reform itself and the country, which didn't work, and the reason can

be summed up in one word: Corruption.

As usual I am rushing in where angels are fearing to tread, and as usual I am

saying something that everybody is thinking, and as usual I will not make

myself very popular by saying it.

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