TNAG-2753-FCO40-3968-Budget-of-Hong-Kong-1993 — Page 2

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FM PEKING

TO IMMEDIATE FCO

TELNO 327

OF 051202Z MARCH 93

HKB 100/3 RECEIVED IN REGISTRY

30 MAR 1993

DESK OFFICER

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Action Taken

INFO IMMEDIATE HONG KONG UKREP ILG HONG KONG

MDHIAN 2237

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HONG KONG: 1993 BUDGET SPEECH: COMMENT BY MFA SPOKESMAN

SUMMARY

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LAST PAPER

1 I COMPLAIN ON A PERSONAL BASIS ABOUT THE MFA SPOKESMAN'S COMMENTS ON THE FINANCIAL SECRETARY'S BUDGET STATEMENT.

DETAIL

2. I TOOK THE OPPORTUNITY OF A CALL ON ZHAO JIHUA ON OTHER BUSINESS ON 5 MARCH TO EXPRESS CONCERN AT THE MFA SPOKESMAN'S PUBLIC COMMENTS ON HONG KONG'S 1993 BUDGET. I HAD SEEN A REPORT OF HIS COMMENTS IN TODAY'S PEOPLE'S DAILY (5 MARCH). I EMPHASISED THAT I WAS SPEAKING PERSONALLY, AND HAD NOT YET RECEIVED INSTRUCTIONS, BUT I EXPRESSED SURPRISE THAT HE SHOULD HAVE BEEN INSTRUCTED TO MAKE THIS KIND OF COMMENT ON A SUBJECT WHICH FELL ENTIRELY WITHIN THE BRITISH GOVERNMENT'S RESPONSIBILITY.

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ZHAO REPLIED THAT IN PRINCIPLE THE BRITISH SIDE HAD THE RESPONSIBILITY OF ADMINISTERING HONG KONG, BUT DURING THE SECOND HALF OF THE TRANSITION PERIOD MANY MAJOR ISSUES RELATING TO A SMOOTH TRANSITION AND A SMOOTH TRANSFER OF GOVERNMENT REQUIRED DISCUSSION BY THE TWO GOVERNMENTS. ON THESE ISSUES THE CHINESE GOVERNMENT HAD THE RESPONSIBILITY AND THE RIGHT TO EXPRESS ITS VIEWS. THERE WERE MANY SIMILAR ISSUES, ONE OF WHICH WAS THE AIRPORT.

4. I SAID THAT ZHAO HAD MISSED THE POINT. IF THE CHINESE SIDE HAD VIEWS WE WOULD BE HAPPY TO LISTEN TO AND REPORT THEM. CONFIDENTIAL CHANNELS EXISTED FOR JUST SUCH A PURPOSE. MY CONCERN WAS THAT RATHER THAN SPEAK TO US IN PRIVATE THE CHINESE SIDE HAD CHOSEN TO COMMENT PUBLICLY. ZHAO REPEATED THAT THE CHINESE SIDE HAD THE RIGHT TO EXPRESS ITS VIEWS ON MATTERS WHICH HAD A BEARING ON THE FUTURE HKSARG. THE BRITISH GOVERNMENT HAD NOT CONSULTED THE CHINESE SIDE BEFORE HAND. WHY THEREFORE SHOULD THE CHINESE SIDE SEEK TO USE CONFIDENTIAL CHANNELS?

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