TNAG-2781-FCO40-4000-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1993 — Page 129

9.8.93

Chen Ziying quoted by a Yan Oi Tong delegation

10.8.93

Chen Ziying quoted by Ta Kung Pao

10.8.93

HK Commercial

Daily editorial

10.8.93

11.8.93

Tsui Tong in HK Commercial Daily

Chinese sources quoted by the HK Economic Journal

11.8.93

Zheng Guoxiong

11.8.93

Wen Wei Po and Ta Kung Pao editorials

12.8.93

Zhang Junsheng

CONFIDENTIAL

8

The HK Government should handle the issue cautiously. The Chinese side hopes that the civil service structure will not be changed drastically after 1997 and that there will not be discontent among civil servants. China hopes to see a smooth transition.

(In response to a question on whether the civil service move will affect the ninth round of talks) China sincerely wants the talks to succeed. But certain remarks and stands can hamper the resumption of co- operation and thus prevent a successful

outcome.

"Local civil servants" means 'Chinese civil servants". Before Governor Chris Patten came to HK, there has never been any dispute over this and Britain has never equated "HK people" with "people who came from Britain and other countries".

Britain has to hang on to power up to June 30, 1997. After the completion of the new airport project, it will ask for another "separation fee" by coming up with a railway project in 1996. If China does not agree to the new railway and let the project straddle 2003, Britain, using its top-level power, will continue to wrestle with China.

The Chinese side has to be consulted on any major change to the civil service system. The issue needs to be raised at the next rtound of JLG meetings.

The measure is a major policy change during the transition. The Chinese side should be

consulted.

The previous policy of giving preference to expatriate civil servants has not only violated human rights but has also smacked of racial discrimination. (Ta Kung Pao) The sudden policy change is another "false start" by the HK Government prior to the ninth round of talks.

The HK Government has not consulted or formally informed China of the new policy. The issue affects the stability of the civil service during the transition as well as HK's smooth transfer. It should be discussed by the JLG.

CONCIDENTINI