CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE F CO
TELNO 708
OF 06120OZ MARCH 92
CONFIDENTIAL
14
146357
MDHIAN 5822
WAT 2 TOP COPY
100/2
Q DIST?
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
8
9
10
r
913
MY TELNOS 687 AND 688 AND YOUR TELNOS 422 AND 424: BUDGET: COMMENTS BY LU PING
IN THE ABSENCE OF CHEN RONGCHUN, YANG YOUYONG OF NCNA CALLED ON THE POLITICAL ADVISER ON 6 MARCH.
1.
2.
EHRMAN SAID THAT I HAD ASKED HIM TO RAISE LU PING'S COMMENTS ON THE BUDGET. WE WERE SURPRISED BY THEM. OUR BUDGETARY PRINCIPLE WAS QUITE CLEAR: IT WAS THAT THE GROWTH OF PUBLIC EXPENDITURE SHOULD REMAIN IN STEP WITH THE RATE OF ECONOMIC GROWTH. WE DID NOT UNDERSTAND DIRECTOR LU PING'S COMMENTS ABOUT THE BASIC LAW.
IN ANY CASE IT DID NOT COME INTO FORCE UNTIL 1997.
3. HONG KONG HAD INDEPENDENT FINANCES NOW AND THE JOINT
DECLARATION GUARANTEED THAT THAT SITUATION WOULD CONTINUE AFTER 1997. FOREIGN MINISTER QIAN QICHEN HAD SAID PUBLICLY LAST YEAR THAT CHINA DID NOT SEEK JOINT ADMINISTRATION IN THE YEARS UP TO
1997.
PUBLICLY WE WERE TRYING TO PLAY DOWN LU PING'S COMMENTS WHEN
ASKED ABOUT THEM. BUT THEY DID UNFORTUNATELY CREATE AN IMPRESSION
OF CHINESE INTERFERENCE IN THE ADMINISTRATION OF HONG KONG. IT WAS NOT HELPFUL EITHER LOCALLY OR INTERNATIONALLY. IT DID NOBODY ANY GOOD. NOR WAS IT CONDUCIVE TO OUR CO-OPERATION FOR A SMOOTH TRANSITION.
EHRMAN CONCLUDED BY SAYING THAT IF THE CHINESE HAD VIEWS ON
OUR BUDGETARY POLICY THERE WERE OTHER BETTER WAYS OF MAKING THEM.
5.
6. YANG SAID THAT HE DID NOT HAVE AUTHORITY TO COMMENT ON THE HONG KONG BUDGET. INSOFAR AS LU PING'S REMARKS WERE CONCERNED, HE HAD NOT READ THE FULL TEXT, BUT FROM MEDIA REPORTS LU'S REMARKS SEEMED TO BE BEYOND REPROACH. HE HAD EXPRESSED THE HOPE THAT HONG
KONG WOULD CONTINUE TO IMPLEMENT THE PRINCIPLE OF SPENDING
ACCORDING TO INCOME. FOR MANY YEARS THE HKG HAD FOLLOWED THIS PRINCIPLE. IT WAS WRITTEN IN THE BASIC LAW. SO THE CHINESE SIDE
PAGE
1
CONFIDENTIAL
No comments yet.
Private notes are available after approval.