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PEKING. LU WAS QUOTED BY DELEGATION MEMBERS AS SAYING THE QUESTION OVER HK'S POLITICAL DEVELOPMENT COULD BE SOLVED IF THE BL AND THE PRINCIPLE OF A SMOOTH TRANSITION WERE FOLLOWED. ON THE AIRPORT, LU WAS QUOTED AS SAYING CHINA WAS WORKING TOWARDS THE AIRPORT BEING BUILT BEFORE 1997: THE PRINCIPLE SHOULD BE LOW COST AND HIGH EFFECTIVENESS. BUT THE HKG HAD CAUSED PROBLEMS ON THE QUESTION OF FINANCIAL ARRANGEMENTS. ON THE NEW POLICY TO ALLOW EXPATRIATE CIVIL SERVANTS TO CHANGE TO LOCAL TERMS, LU WAS QUOTED AS SAYING CHINA WOULD NOT DISCRIMINATE AGAINST NOR REJECT EXPATRIATE CIVIL SERVANTS
AFTER 1997.
ZHU RONGJI
5. THE HK STANDARD REPORTED THAT ACCORDING TO CHINESE BANKING SOURCES (25.8) CHINESE VICE PREMIER ZHU RONGJI TOLD A NATIONAL MEETING OF CHINA'S OVERSEAS BANKING AND INSURANCE INSTITUTES IN PEKING THAT BRITAIN MIGHT PLAY THE 'FINANCIAL CARD' DURING THE LAST
FOUR YEARS OF TRANSITION. ZHU SAID THE HK-BASED BANK OF CHINA GROUP
WOULD EXPAND AND MAKE ITSELF A MAJOR INTERNATIONAL BANKING INSTITUTION. ZHU WAS QUOTED AS SAYING THE STRATEGY WAS A CRUCIAL STEP IN CHINA'S EFFORT TO SECURE A SMOOTH TRANSITION OF SOVEREIGNTY
IN HK.
XU JIATUN
6. SOME PAPERS (26.8) PICKED UP A TVB INTERVIEW WITH FORMER DIRECTOR OF NCNA HK BRANCH XU JIATUN IN HIS LOS ANGELES HOME. XU WAS OPTIMISTIC ABOUT THE FUTURE OF HK ALTHOUGH HE PREDICTED TURBULENCE IN THE RUN-UP TO 1997. HE SAID THE PRESENT SINO-BRITISH
DISPUTE WAS A REPERCUSSION OF JUNE 4. THE WESTERN COUNTRIES GOT TOUGH WITH CHINA AND UK'S HK POLICY HAD ALSO TURNED TOUGH. DENG XIAOPING REACTED TO THIS BY A HARD LINE POLICY. THE SETTING UP OF THE PWC WAS ONE OF THE WAYS TO PINPOINT THE GOVERNOR. XU BELIEVED BRITAIN AND CHINA WOULD RESUME COOPERATION IN THE END. XU SAID TO GAIN THE HEARTS OF HK PEOPLE, MORE DEMOCRACY SHOULD BE GIVEN TO HK. IF NECESSARY THE BL COULD BE CHANGED AFTER 1997. HE SAID MORE LIBERALS SHOULD BE INVITED TO THE PWC.
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