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7.
MDLIAN 0500
WAS NEEDED. XINHUA ISSUED A COMMENTARY CRITICISING THE GOVERNOR FOR CONFRONTING CHINA AND UNDERMINING HONG KONG'S GOOD INVESTMENT
ENVIRONMENT.
5. PAPERS NOTED (4.12) THE SECRETARY OF STATE IN AN INTERVIEW WITH THE BBC BACKED THE GOVERNOR'S DEMOCRACY PROPOSALS. MR.HURD SAID IT WAS A GOOD THING IF BOTH SIDES, DURING THE PERIOD UP TO 1997, COULD WORK TOGETHER. HOWEVER, THIS WAS DIFFERENT FROM CHINA INTERFERING WITH BRITAIN'S RESPONSIBILITY TOWARDS HONG KONG AND DECIDING WHAT BRITAIN COULD OR COULD NOT DO.
6.
THE MEDIA NOTED (4.12) IN AN INTERVIEW WITH THE BBC, SIR PERCY CRADDOCK DESCRIBED THE CURRENT WAR OF WORDS BETWEEN BRITAIN AND CHINA AS THE MOST SERIOUS CRISIS IN HONG KONG OVER THE LAST 10 YEARS. SIR PERCY SAID FAILURE TO CO-OPERATE WITH CHINA WOULD HURT HONG KONG. HE WARNED THE CHINESE MEANT WHAT THEY SAID ABOUT SCRAPPING THE GOVERNOR'S POLITICAL PLANS IN 1997 AND IT WOULD BE A SERIOUS MISJUDGEMENT TO THINK OTHERWISE.
7. MANY HONG KONG AFFAIRS ADVISERS DENIED REPORTS (3.12) THAT CHINA WOULD SET UP A COMMITTEE TO SCRUTINISE ALL CONTRACTS, LEASES AND AGREEMENTS STRADDLING 1997. BOTH SING TAO DAILY AND HONG KONG ECONOMIC TIMES QUOTED CPPCC MEMBER XU SIMIN AS SAYING THE RELEVANT CHINESE OFFICIALS HAD CONFIRMED TO HIM THERE WAS NO QUESTION OF ESTABLISHING SUCH A COMMITTEE BECAUSE THIS WORK SHOULD BE DONE BY THE JLG. OTHER HONG KONG AFFAIRS ADVISERS LIU YIUPCHU, T.S.LO AND KAN FOOK YEE WERE ALSO QUOTED AS SAYING THEY WERE NOT AWARE OF SUCH A PLAN NOR HAD BEEN INVITED TO BECOME MEMBERS. THE HONG KONG ECONOMIC TIMES QUOTING SOURCES SAID (4.12) THE CHINESE SIDE WERE PLANNING TO SET UP AN OFFICIAL ORGANISATION MADE UP OF 20 CHINESE AND 20 HONG KONG PEOPLE TO CONVERGE WITH THE COMPOSITION OF THE SAR PREPARATORY COMMITTEE. IT WOULD BE RESPONSIBLE FOR MATTERS CONCERNING HONG KONG'S TRANSITION, INCLUDING THE VETTING OF CONTRACTS, AGREEMENTS AND FRANCHISES STRADDLING 1997. THE SOURCES SAID THE PURPOSE OF SETTING UP SUCH A COMMITTEE WAS TO DEAL WITH IN ADVANCE TRANSITION MATTERS AND FURTHER UNDERMINE THE AUTHORITY OF THE GOVERNOR.
8. THE PARLIAMENTARY FOREIGN AFFAIRS COMMITTEE CHAIRMAN DAVID HOWELL, EXPRESSED SUPPORT (4.12) FOR THE GOVERNOR'S POLITICAL BLUEPRINT DURING AN INTERVIEW WITH RTHK. THE FORMER AUSTRALIAN PRIME MINISTER, BOB HAWKE, SAID HE WAS CONFIDENT THE DISPUTE COULD BE SETTLED SOON. THE US SECRETARY OF COMMERCE, BARBARA FRANKIN, IN AN INTERVIEW WITH CNN, SAID THE US HAD AN INTEREST TO
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