CONFIDENTIAL
FM BRUSSELS
TO TELELETTER FCO
TELELETTER NFR
OF 051354Z APRIL 93
ADDRESSED TO:
COPIED TO:
RE
INC
CONFIDENTIAL
13 APR 1993
per int sup.
1. Gm MX
33
135721
MDTTAN 9892
Mr Manis
May 7/4
M. Sante 1/41
P F RICKETTS ESQ, HONG KONG DEPT, FCO Mrs B. J. to note 'x' porta s
CHANCERY, PEKING
POLITICAL ADVISER, HONG KONG
HUGH DAVIES ESQ, FED, FCO
MARCUS HOPE ESQ, WED, FCO
VISIT BY THE GOVERNOR OF HONG KONG: HONG KONG-CHINA RELATIONS
I ACCOMPANIED MR PATTEN FOR THE BREAKFAST MEETING HE HAD WITH THE BELGIAN FOREIGN MINISTER, WILLY CLAES, ON 2 APRIL.
1.
2*
THE GOVERNOR GAVE A GENERAL INTRODUCTORY VIEW OF THE CURRENT RELATIONSHIP BETWEEN HONG KONG AND PEKING, EMPHASISING THAT CHINA'S ATTITUDE TOWARDS HONG KONG WOULD BE A TEST FOR THE REST OF THE WORLD OF CHINA'S SINCERITY AS AN INTERNATIONAL PARTNER. CLAES SAID HE DOUBTED WHETHER CHINA WAS READY TO ACCEPT TWO DIFFERENT POLITICAL SYSTEMS, WHATEVER THEIR ATTITUDE MIGHT BE TOWARDS TWO ECONOMIC SYSTEMS. THE GOVERNOR SAID THAT THE JOINT DECLARATION
DESCRIBED A NUMBER OF POLITICAL AND SOCIAL FREEDOMS IN HONG KONG. BOTH SIDES HAD UNDERTAKEN TO PROTECT THESE FREEDOMS, WHICH WAS THE REASON WHY THERE WAS MORE WESTERN INVESTMENT IN HONG KONG THAN IN TAIPEI OR KOREA. ASKED WHETHER CHINA WOULD NOT ARGUE THAT OTHER ASIAN COUNTRIES HAD ACHIEVED ECONOMIC PROGRESS WITHOUT PLURALISM, THE GOVERNOR SAID THERE WAS NOW MORE POLITICAL PLURALISM IN TAIPEI
THAN IN HONG KONG. CHINA HAD ALWAYS BEEN BAD AT MANAGING LARGE-SCALE CHANGES OF POWER AND IDEOLOGY. INFLATION AND CORRUPTION WERE GROWING AND WERE EXACERBATING JEALOUSIES BETWEEN THE EXPANDING PRIVATE SECTOR AND THE POORLY PAID PUBLIC SECTOR.
3.
THE GOVERNOR SAID HE DID NOT CONSIDER THE APPOINTMENT OF THE 40 ADVISORS A SERIOUS THREAT, AND EVEN THE 'SECOND STOVE' METAPHOR WAS DIFFICULT TO GAUGE: MORE PROBLEMATIC WAS PEKING'S VIEW
OF COMMERCIAL FRANCHISES EXTENDING BEYOND 1997, E.G. THE AIRPORT. THERE WAS A PARADOX IN CHINA'S ATTITUDE: AT THE SAME TIME AS THEY THREATENED UK FIRMS AND TRADE THEY EXPECTED US TO SUPPORT THEM ON GATT AND MEN (AND THERE WAS ALSO THE OLYMPICS 2000 ISSUE). MOREOVER THEY HAD A SUBSTANTIAL TRADE SURPLUS WITH THE UK
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CONFIDENTIAL
HKD 21/4.
27 APC 1993
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