The Straits Times 15 August 2003

 

Beijing may shelve new HK law

Special task force also plans political and economic measures to restore stability after wide protests over security law

By Ching Cheong

HONG KONG - China is prepared to shelve the enactment of a controversial anti-subversion law that sparked off massive protests in Hong Kong last month.

This was one of the decisions reached by top leaders in Beijing at a recent meeting called to map out political and economic measures to restore stability to a Hong Kong mired in its worst political crisis since its return to Chinese sovereignty in 1997.

A well-placed source in the Chinese capital told The Straits Times that Vice- President Zeng Qinghong, now head of a special task force on Hong Kong, agreed the top priority was to stabilise the situation.

The task force, known as the Central Leading Group (CLG) on Hong Kong, drew up six measures that should be taken by officials in Beijing and Hong Kong:

1. Increase contacts with Hong Kongers to understand their views and complaints.

 

2. Strengthen liaison work with the Hong Kong government to facilitate communication between the territory, central government and provincial governments.

 

3. Bring the different political parties and organisations in Hong Kong into the fold to broaden the 'patriotic front'.

 

4. Build up a better understanding between the central government and lawyers and educationists, the two most vocal and critical groups in Hong Kong.

 

5. Build up contacts with the pro-democracy camp to win over its less hardline members.

 

6. Step up efforts to improve the central government's image among Hong Kongers.

 

It was at this meeting that Beijing, worried about Hong Kong's ailing economy, decided to relax restrictions on travel by allowing residents in several major cities to visit Hong Kong on their own.

Previously, they had to join group tours.

This could boost the number of mainland visitors to 20 million annually, compared with the six million who went to Hong Kong last year.

To stimulate investment, Beijing has just approved a bridge linking the southern city of Zhuhai to Hong Kong and Macau.

The mammoth project to build the 29-km-long bridge is expected to attract US$2.5 billion (S$4.4 billion) in investments and create 20,000 jobs.

When complete, it will extend Hong Kong's hinterland further into the fast-growing Pearl River Delta area.

To strengthen Hong Kong's commercial position, the CLG has called for speedier implementation of a trade pact signed by the territory and China on June 29.

To enhance Hong Kong's role as an international financial centre, the CLG meeting also agreed, in principle, to allow qualified institutional investors on the mainland to invest in the Hong Kong stock exchange.

Theoretically, this will allow Hong Kong to tap China's massive saving deposits - estimated at seven trillion yuan (S$1.5 trillion) - and channel them into investments from stocks to other financial derivatives in the territory.

According to the source, Beijing will give the go-ahead once the full implications of the scheme on China's financial sectors have been studied carefully.