TNAG-2782-FCO40-4001-Future-of-Hong-Kong-Chinese-policy-1993 — Page 20

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER

SECTION 3 (4) OF THE

PUBLIC RECORDS ACT 1958

SECRET

SECRET

0123 RECEIVED IN REGISTRY

6 1993

DESK OFFICER

FM HONG KONG

TO DESKBY 051300Z FCO

INDEX

PA

TELNO 14

OF 051055Z JANUARY 93

INFO IMMEDIATE PEKING, HIKRER

and

REGIS

A/DIST ? ·

Taken

COPY

pa

6

025011

MDHIAN 4272

012/3

CONSTITUTIONAL DEVELOPMENT: CHINESE ATTITUDE.

1. WHILE I ACCEPT THAT WE SHOULD NOT CONCLUDE FROM RECENT CHINESE STATEMENTS THAT THEIR OPPOSITION TO MY CONSTITUTIONAL PROPOSALS IS CRUMBLING, NEITHER SHOULD WE UNDERESTIMATE THE MODERATION IN THEIR ATTITUDE EVIDENT FROM THEIR STATEMENTS SINCE JUST BEFORE CHRISTMAS.

2. THE CHINESE ATTITUDE IN MID-DECEMBER APPEARED TO BE THE FOLLOWING:

- WE HAD REPORTS THAT THE ESTABLISHMENT OF A TRANSITIONAL AFFAIRS COMMITTEE WOULD BE ANNOUNCED BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE'S CONGRESS IN LATE DECEMBER. THERE WAS TALK OF

THIS BEING SET UP IN SHENZHEN AND OF IT PRONOUNCING ON CONTRACTS AND FRANCHISES STRADDLING 1997.

-

THE CHINESE HAD SAID THAT NON-CONVERGENCE IN ARRANGEMENTS FOR

THE LEGISLATURE WOULD MEAN NON-CONVERGENCE IN ALL FIELDS ADMINISTRATIVE, JUDICIAL AND LEGISLATIVE. LU PING HAD TOLD ME THIS IN PEKING IN OCTOBER.

THE CHINESE WERE DISCOURAGING ANY COUNTER-PROPOSALS TO MY OWN.

THE CHINESE STATEMENT ON CONTRACTS AND FRANCHISES COULD HAVE BEEN A PRELUDE TO DEMANDS THAT CONTRACTS AND FRANCHISES STRADDLING 1997 AND SIGNED BEFORE CONSULTATION STARTED IN THE JLG WOULD NEED TO BE RECONSIDERED, AND THAT SMALL AS WELL AS BIG CONTRACTS AND FRANCHISES WOULD HAVE TO BE VETTED IN

FUTURE.

THE STATEMENT DIRECTED AT JARDINES WAS A CRUDE THREAT TO UNDERMINE THEIR COMMERCIAL ACTIVITIES BECAUSE OF THEIR POLITICAL SUPPORT FOR MY PROPOSALS. SWIRES WERE ALSO RECEIVING THREATS (EG. AFTER HOWARD YOUNG VOTED FOR THE AIRPORT PLATFORM CONTRACT IN LEGCO). THE HONG KONG BANK

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