TNAG-2708-FCO40-3914-House-of-Commons-Select-Committee-on-Foreign-Affairs-and-Par-1993 — Page 58

UNCLASSIFIED

037337 MDLIAN 8509

FISCAL RESERVE OF HONG KONG DOLLARS 78 BILLION WOULD BE LEFT TO THE SARG IN 1997. THE HEAD OF THE ECONOMIC DEPARTMENT OF NCNA HONG KONG OFFICE, CHEN KEQIANG, CRITICISED THE BUDGET FOR BEING A DEFICIT ONE. MR CHEN CLAIMED THE DEFICIT STRATEGY THIS YEAR WENT AGAINST THE CONVENTIONAL FISCAL POLICY OF THE HKG. WEN WEI PO (3.3) DESCRIBED THE BUDGET AS 'POLITICISED' AIMING AT 'WINNING HEARTS'. A SPOKESMAN OF THE CHINESE FOREIGN MINISTRY LI JIANYING SAID (5.3) THE CHINESE GOVERNMENT HOPED THE HKG WOULD MAINTAIN A CAUTIOUS BUDGETARY POLICY TO ENSURE ECONOMIC PROSPERITY AND A SMOOTH TRANSITION FOR HONG KONG.

DISCIPLINED SERVICE COUNCIL'S MEETING WITH LU PING.

13.

THE PAPERS REPORTED WIDELY (3.3) A MEETING BETWEEN A DELEGATION OF THE STAFF SIDE OF THE GENERAL DISCIPLINED SERVICE COUNCIL AND LU PING IN PEKING. MR LU ASSURED THE DELEGATION THAT CIVIL SERVICE PENSIONS WERE PROTECTED BY LAW AND WOULD BE TAKEN INTO ACCOUNT BY THE SARG IN ITS BUDGET. MR LU SAID THE CHINESE SIDE AGREED TO SET UP A PENSION FUND BEFORE 1997 AND HAD RAISED THIS QUESTION AT THE JLG. THE BRITISH SIDE HAD INDICATED THEY WOULD CONSIDER. MR LU ALSO SAID THE CHINESE SIDE HAD FOUGHT WITH THE BRITISH SIDE TO ENSURE MORE RESERVES WOULD BE LEFT TO THE SARG. THEY HAD SUCCEEDED IN FIGHTING FOR HONG KONG DOLLARS 25 BN IN THE AIRPORT MOU. BUT THAT WAS NOT ALL, THERE WAS ALSO THE LAND FUND WHICH WAS ESTIMATED TO REACH ABOUT HONG KONG DOLLARS 70 BN

to 80BNBY 1997. THE TWO FIGURES WOULD LEAVE UP TO DOLLARS 100 BN TO THE

SARG. ALTHOUGH NOT VERY WELL OFF, IT MADE IT AFFORDABLE TO MEET PENSION PAYMENTS. MR LU ALSO SAID ACCORDING TO THE PRESENT CIVIL SERVICE SYSTEM, CIVIL SERVANTS SHOULD BE APOLITICAL. THIS SITUATION SHOULD CONTINUE. MR LU ACCUSED THE GOVERNOR HAD FORCED SOME SENIOR CIVIL SERVANTS TO INDICATE THEIR STANCE ON POLITICAL ISSUES. MR LU ALLEGED THIS WAS NOT IN ACCORDANCE TO THE PRESENT SYSTEM. MR LU SAID CIVIL SERVANTS IN CARRYING OUT THEIR DUTIES WERE WORKING IN ACCORDANCE TO THE LAW. THEREFORE THE QUESTION OF THE CHINESE PENALISING OR DISCRIMINATING CIVIL SERVANTS AFTER 1997 DID NOT EXIST.

FORD

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