TNAG-2782-FCO40-4001-Future-of-Hong-Kong-Chinese-policy-1993 — Page 14

UNCLASSIFIED

FM HONG KONG

TO PRIORITY FCO

TELNO 74

OF 160439Z JANUARY 93

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012-13

RECEIVED IN REGISTRY

18 **N 1993

DESK OFFICER

INDEX

PA

REGISTRYA

Action Taken

INFO PRIORITY PEKING, UKREP JLG HONG KON

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060560 MDLIAN 7567

TOP GO

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Pa 012/3

CONTRACTS: PRESS REPORTS ON REMARKS MADE BY WANG QIREN AND CHEN

ZIYING

SUMMARY

1. WANG QIREN AND CHEN ZIYING WERE REPORTED TO HAVE SAID CONTRACTS AWARDED BY THE SARG/TRADE RELATIONS BETWEEN THE SAR AND OTHER COUNTRIES SHOULD BE IN LINE WITH THE CHINESE GOVERNMENT'S FOREIGN POLICY. THIS WAS CONTRADICTED BY REMARKS MADE BY TIAN ZENGPEI THAT THE SAR WAS UNDER A DIFFERENT SYSTEM AND COULD MAKE ITS OWN DECISIONS.

DETAIL

2. THE SCMP REPORTED THAT THE DEPUTY DIRECTOR OF THE HKMAO, WANG QIREN, SAID SOME CONTRACTS TO BE AWARDED BY THE SAR WOULD REQUIRE APPROVAL FROM BEIJING BUT FELL SHORT OF SPELLING OUT TO WHAT DEGREE FOREIGN POLICY WOULD IMPINGE ON THE SAR'S ABILITY TO SIGN CONTRACTS. IT WAS NOTED MR WANG MADE THE REMARKS IN RESPONSE TO A QUESTION ABOUT CHINA'S DECISION TO TERMINATE THE UNDERGROUND RAILWAY CONTRACT TO A FRENCH COMPANY IN RETALIATION FOR THE SALE OF MIRAGE JETS TO TAIWAN. THE PAPER NOTED HE SIDE-STEPPED THE QUESTION OF WHETHER A SIMILAR SCENARIO MIGHT OCCUR IN A BUSINESS DEAL BETWEEN SAR AND ANOTHER COUNTRY BUT WAS QUOTED AS SAYING THE FOREIGN AFFAIRS OF SAR AND ITS RELATED CONTRACTS, SHOULD BE DEALT WITH THROUGH THE CENTRAL GOVERNMENT. WEN WEI PO NOTED MR WANG SAID THE SAR ENJOYED A HIGH DEGREE OF AUTONOMY AND NORMAL TRADE RELATIONS SHOULD CONTINUE AS STIPULATED IN THE BL. HOWEVER, QUESTIONS WHICH INVOLVED FOREIGN AFFAIRS SHOULD BE DECIDED BY THE CHINESE CENTRAL GOVERNMENT.

3. THE HK ECONOMIC JOURNAL CARRIED SIMILAR REMARKS MADE BY ANOTHER DEPUTY DIRECTOR OF THE HKMAO, CHEN ZIYING. MR CHEN WAS QUOTED AS SAYING THAT AFTER 1997, THE TRADE BETWEEN HK AND MACAU AND OTHER COUNTRIES SHOULD BE IN LINE WITH THE CHINESE GOVERNMENT'S FOREIGN POLICY. MR CHEN ADDED, HOWEVER, THAT EXCEPT QUESTIONS CONCERNING NATIONAL DEFENCE AND FOREIGN POLICY, HK AND MACAU ENJOYED A HIGH DEGREE OF AUTONOMY AND THAT THE CHINESE

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