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July 3, 1997

HONG KONG JOINS CHINA: CAN 'ONE COUNTRY, TWO SYSTEMS' WORK FOR TAIWAN?

In the days following the transfer of Hong Kong to Chinese sovereignty, two new themes emerged in the foreign media's assessment of the "new reality" of a China that also includes one of the world's freest and most vibrant economic centers. The first was speculation on what effect the "virus" of Hong Kong's "freewheeling" lifestyle and economy might have on the mainland. Of equal interest to overseas analysts were Beijing's intentions toward Taiwan following statements out of Beijing that "the 'one country, two systems' formula...can also work for Taiwan." Dailies in Taipei were quick to counter that Taiwan was "absolutely not another Hong Kong" and argued strongly in favor of "self-determination" for its 21 million people. "Hong Kong's residents...were never consulted," the liberal, pro-independence Liberty Times intoned, adding, "We cannot but remain highly concerned and alert." Following are the major trends in the commentary.

THE HONG KONG 'VIRUS': China's official papers confirmed comment elsewhere that Hong Kong's economy was bound to have a profound effect on the Chinese mainland. "As the major channel between China and international markets, Hong Kong will...(bring) international capital to China's interior and...(help transport) China's commodities to world markets," a writer for Shanghai's Wenhui Daily asserted, citing the important "national interests" that Hong Kong held for the mainland. A majority of analysts elsewhere sounded the theme that China was likely to become "more like Hong Kong" than the reverse. Some warned that the "infusion" of the "opium" of freedom--both economic and political--from Hong Kong into China could prove problematic for Beijing's leaders. The predominant conclusion, however, was that it was in China's best interest not to crack down on Hong Kong "once the fireworks (of the handover ceremony) fade away."

TAIWAN THE NEXT 'TARGET' FOR 'REUNIFICATION'?: Foreign observers generally agreed that any missteps on Beijing's part in applying the "one country, two systems" model in Hong Kong would bode very ill for an eventual "reunification" with Taiwan. A number of writers, however, argued that the Hong Kong formula would never work in Taiwan because the differences between the two were too great. A pundit in Bangkok's elite Naew Na, for example, pointed out that "the repossession of Hong Kong, a leased territory," was quite different from the case of Taiwan, which has regarded itself as an independent nation since the time of General Chiang Kai-shek. "China's offer of the 'one country, two systems'...will not be able to quench the Taiwanese thirst for greater freedom under democratic rule," the paper warned. In the words of the conservative Ottawa Sun, "The time has come to help put a defensive wedge between Taiwan and Red China by recognizing Taiwan as a democratic reality which must be helped, not hindered. It's a debate which should begin today. If not yesterday."

This survey is based on 59 reports from 23 countries, June 30 - July 3.

EDITOR: Kathleen J. Brahney

EAST ASIA AND PACIFIC

CHINA: "Rumors Are Stopped By Wise Men, Facts Speak Louder Than Words"

Noting that the reversion of Hong Kong "made a great impact on the U.S. media," Dong Jun wrote in the official Communist Party Liberation Daily (Jiefang Ribao, 7/2): "Hong Kong's return to Chinese sovereignty marks the final retreat of Western colonial rule in Southeast Asia. Some conservatives in the United States have been unhappy about this and have reacted with threatening predictions about the future of Hong Kong. Similar views have also been heard in the American media. Televisions programs on Hong Kong are creating a tense and pessimistic atmosphere. But these programs were unsuccessful.... When a Chinese-American or a Hong Kong resident was interviewed and gave unsatisfactory answers, some senior news anchors are embarrassed."

"Inland Chinese Economy Crucial To Hong Kong's Long-Term Prosperity"

Huang Renwei, of the Shanghai International Studies Research Center, observed in the official Shanghai Municipal Wenhui Daily (Wenhui Bao, 7/2): "As the major channel between China and international markets, Hong Kong will be responsible for bringing international capital to China's interior and for transporting China's commodities to world markets.... The pivotal role played by Hong Kong in capital and commodity flows has laid the foundation for the international financial center whose function is the utilization and allocation of capital.... A combination of the highest level of free trade in Hong Kong and a more open China will be an important contributor to regional economic development.... In the next five to 10 years, China will become more active in APEC's free trade process and the WTO, thereby providing opportunities to develop an even bigger market.... As for China, maintaining Hong Kong as an international financial and trade center is one of its largest national interests. So there is no doubt that the policies of 'one country, two systems,' 'Hong Kong ruled by Hong Kong people,' and the 'high degree of autonomy' for the Special Administrative Region will be carried out."

HONG KONG: "Lofty Ambitions"

The independent, English-language South China Morning Post editorialized (7/2): "If he succeeds in fulfilling three quarters of the pledges in his first speech as leader of the SAR government, Chief Executive Tung Chee-hwa's term in office will far outclass the performance of any previous Hong Kong government. His aims are ambitious. In some areas they may prove rather too ambitious. There were times when his words had the ring of a politician seeking election, rather than a leader who has the future of 6.3 million people in his hands. But Mr. Tung has one advantage that most government heads only dream of. The Hong Kong coffers are full to overflowing, and he can well afford to spend a modest portion of that money in neglected areas which are crying out for cash. With a surplus of $320 billion at his disposal, there is no need to dig deep into the funds to find sufficient money to significantly improve education, housing and care of the elderly. Most people would agree that of those three, education is the main priority. It is the wellspring of economic success, and since the economy is another of the chief executive's major targets, he is prepared to upgrade every aspect of the current system, from the quality of teaching staff to the curriculum itself. The difficulty in this particular endeavor is that money alone cannot solve the greatest problem."

TAIWAN: "Nothing To Be Happy About As Hong Kong Falls Again"

This comment ran in the liberal, pro-independence Commons Daily (7/2): "The will of the more than six million Hong Kong residents, which is the most crucial factor, was never consulted or respected. Therefore, we have nothing to be happy about. The tragedy of Hong Kong is just about to start. We cannot but remain highly concerned and alert."

"Taiwan Absolutely Not Another Hong Kong--Refuting Jiang Zemin"

The liberal, pro-independence Liberty Times took exception to Chinese President Jiang Zemin's words about Taiwan and ran this comment (7/2): "Actually, the simplest common sense or logic tells us that the unification of East and West Germany is but 'one nation one system.' In a similar fashion, Hong Kong should renounce its capitalism and adopt socialism after its handover to China. Despite this logic, China separates Hong Kong from its mainland. Does this mean that China admits that 'socialism with Chinese characteristics' is inferior to 'Hong Kong's capitalism?' Taiwan is a sovereign nation. Its president and parliamentarians are elected by the people. Taiwan's future should be decided by its 21.4 million people. After all, 'the core of freedom is the fundamental principle of self-determination.'"

"Keep An Eye On U.S. Policy"

Asking "why was the Taiwan Relations Act set aside in Albright's remarks?" in its sub-heading, the conservative, pro-unification United Daily News concluded (7/2): "If Taipei cannot work out an argument to convince the United States otherwise, the United States will conduct a strategic dialogue with China concerning Taiwan, based on the guiding principles of the three communiques, this will exert increasing pressure on Taipei, and the outcome might even go beyond Taipei's expectation."

"PRC Capital May Arrive Through Hong Kong"

The conservative, pro-unification China Post maintained (7/2): "What Taiwan really needs to be concerned about is that mainland China may seek to infiltrate the local economy using the advantage of Hong Kong's greater economic integration with the Chinese mainland, a development that is certain to happen with the reversion of the territory to Beijing rule."

"Can International Pressure Ensure Hong Kong's Freedom And Rule of Law?"

Tsai Hung-ming, executive secretary at the Chinese National Federation of Industries, penned this for the liberal, pro-independence Commons Daily (7/2): "In fact, both Hong Kong local businesses and foreign firms in the territory all have ambiguous feelings toward the international community's concern over Hong Kong. They...very much welcome the international community's surveillance over Beijing's Hong Kong policy, but...do not want the United States or other countries to overdo it and thereby sacrifice their interests."

AUSTRALIA: "Model Democracy Won't Happen"

The international editor for the national, conservative Australian (7/2) commented, "It is folly to believe that Hong Kong under China is going to become a model democracy. That won't happen and the issue is how the West then reacts. This is important to the future path of the Australia-U.S. relations, which saw a symbolic difference of opinion during the handover ceremony. If Hong Kong becomes a focus for a deeper dispute between the United States and China over human rights then, depending upon the source of the dispute, Australia and the United States might experience a growing gulf."

INDONESIA: "After The July 1st Handover Of Hong Kong"

Readers of leading, independent Kompas saw this editorial (7/3): "Somehow democratic tradition has become deeply rooted in the former British colony and Hong Kong citizens are able to criticize political parties. In China, people do not enjoy such freedom and the Hong Kong handover will give rise to confusion among other Chinese citizens. One likely solution is application of two different kinds of treatment for the newly joined citizens.

"Yet, should the democratic tradition be allowed to continue, Beijing's leaders would have reason to worry that their leadership status will be endangered."

"Hong Kong Citizens Are Individualistic"

Pro-government Berita Buana (7/2) editorialized: "Hong Kong citizens are individualistic in the good sense, that is, everyone is supposed to work hard, independent even from their own parents and relatives. This credo has given birth to liberalism.... China should see this reality...and not change drastically Hong Kong's social, political and administrative systems. Let Hong Kong go on as it has done...to avoid chaos and even bloodshed."

PHILIPPINES: "Ominous"

In the view of the liberal Today (7/3): "Aside from the momentary sympathy shown by the world to the (Hong Kong) democrats' last hour of prominence, (Martin) Lee and company will find little support from the outside world henceforth. Britain and the United States tried to mount a symbolic protest by not attending the inauguration of the new Hong Hong government, but their move found no support from their allies--or even from (Hong Kong's) citizens, who are eager to curry favor with the new regime."

"Crystal Ball Gazing"

Columnist Antonio Abaya wrote in third leading Philippine Star (7/3): "My guess is that in...50 years, it will be China that will become more and more like Hong Kong, rather than the other way around. One can already sense that Shanghai, Guandong, Xiamen, Shenzhen and other Chinese cities are fast morphing into competing enclaves of capitalism, while there is absolutely no sign at all that any part of Taiwan is on its way to organizing itself into a Maoist people's commune."

"China Has Solemn Promises To Keep"

Former ambassador Oscar Villadolid wrote in the independent Manila Standard (7/3): "Although he has already upset Hong Kong democrats by mandating a provisional legislature under his hand-picked Chief Executive Tung Chee-hwa, he has agreed to 'free' elections in May, 1998.... If China's track record in promises is to be the gauge of what the SAR can expect, then the people of Hong Kong are in for a disappointment."

"Pathetic Sideshow"

Former Philippine envoy to Europe J.V. Cruz wrote in the independent Manila Chronicle (7/2): "One of the most pathetic sideshows at the turnover rites was the 'boycott' by British Prime Minister Tony Blair and U.S. Secretary of State Madeleine Albright of the ceremony marking the induction of the provisional legislature.... They weren't missed at all.... The Western media are full of China-bashers.... And a great deal of China-bashing is nothing but undiluted racism. So the Western media will not relax its 'vigil' on Hong Kong and will keep hoping that the Special Administrative Region will stumble in its administration of the territory."

SOUTH KOREA: "A Great Future For Jiang Zemin"

Moderate Hankook Ilbo (7/3) commented: "Hong Kong returned to China, making President Jiang Zemin more confident than ever. At the time of Deng Xiaoping's death, his future looked uncertain, with many speculating that he would lose in a power struggle.... However...it is great political advantage for him that Hong Kong returned to China, and his future is no longer in the dark."

"U.S. And China-Taiwan Relations"

Anti-establishment Hankyoreh Shinmun (7/2) commented: "The Taiwanese attitude toward the prospect of reunification with China will be decided by China--how well it performs in Hong Kong..... If Hong Kong's stability falters, that will lead dissidents to move to Taiwan to fight for their cause there.... The United States is the only country that can make a difference on China-Taiwan relations. It may well be that relations of the two Chinese states are already moving according to a direction and timetable set by the United States."

THAILAND: "Taiwan, China's Next Target"

Charnnarit Boonparord observed in elite Naew Na (7/3): "Reunification with Taiwan, China's next aim, will run into may complexities due to the striking differences between Taiwan and Hong Kong.... Taiwan, a political refuge for General Chiang Kai-shek and his Kuomintang followers after they fled late Chairman Mao Zedong's assaults in 1949...has always regarded itself as an independent nation.... China's offer of the 'one country, two systems'...will not be able to quench the Taiwanese thirst for greater freedom under democratic rule.... Moreover, the repossession of Hong Kong, a leased territory, was more simply achieved when the lease contract expired.... All told, the China-Taiwan reunification, though inevitable, is still far beyond the horizon."

"China's Strategy After July 1, 1997"

Academic Vorasak Mahattanobon commented in elite, business-oriented Phujatkarn (7/3): "The return of Hong Kong means much more to China than having recovered a long-lost son. For the latter has not only grown up and matured, but is also prospering and ready to share its wealth with and impart know-how to mother China.... (Having gained more confidence as a result,) China definitely will not compromise when it comes to future claims over contentious natural resources.... Boosted by Hong Kong, China will concentrate more on its conflicts with the United States and other Western countries, especially conflicts over human rights and democratic ideology.... When and if a conflict erupts, China's first reaction will likely be to turn to its friends in Southeast Asia. After all, these friends share more or less similar political views with China."

"Improper For Outsiders To Pressure China"

The lead editorial of the elite Siam Post emphasized (7/2): "With total sovereignty over Hong Kong, China has a legitimate right to determine whether to shut Hong Kong in or retain its status quo. It would be improper for outsiders to pressure China to keep Hong Kong open only to be like them.... China has a mandate to formulate a Hong Kong policy for the best interests of the Chinese and China as a whole."

EUROPE

BRITAIN: "Blair Adopts Jaw-Jaw Approach"

Ian Black, diplomatic editor of the liberal Guardian, remarked (7/2): "As the British government contemplates the post-handover period, it is sharply aware that although its economic interest in, and moral commitment to, the former colony remains strong, its ability to influence events has been badly weakened.... Britain's strongest support comes from the United States, the only other country to boycott the swearing-in ceremony of the Beijing-appointed provisional legislature. But the United States learned the hard way that EU partners with significant trading interests were not keen to upset China by following suit."

"Sealed With A Golden Kiss"

In the editorial view of the conservative Times (7/2): "Anyone who claims to know what will happen to Hong Kong is a fool. I doubt if even Chinese President Jiang Zemin, has a clue.... (The) optimism (that) exists about the future autonomy of Hong Kong is rooted in one quality alone--that Beijing's rulers are too greedy to 'kill the golden goose.' It is a shaky foundation for civil liberty. Thus did Attila approach the gates of Rome."

GERMANY: "Capitalist Tail Wagging The Communist Dog?"

Right-of-center Nuernberger Zeitung noted (7/2 ): "In order to convince Taiwan, Beijing must now show its better profile. But this will strengthen the self-confidence and the Western democratic and capitalist thinking of the Hong Kong Chinese. However, such a development cannot be without effect on the Chinese special economic zones, and thus on China as a whole. It cannot be ruled out that the whole process that Beijing set in motion in establishing the special economic zones will get out of control...with the taking over of Hong Kong.... It cannot be ruled out that, some day in future, the capitalist tail will wag the communist dog."

"Hong Kongers Will Have To Heed Beijing Now"

Right-of-center Berliner Kurier asserted (7/2): "After fire crackers and fireworks chased away the 'evil spirits,' the moment of truth has come for Hong Kong. Li Peng's announcement that every criticism will be considered in future an 'interference in internal Chinese affairs' is directed not only at the countries abroad. It is also a warning signal for the citizens of the former crown colony to use the tone that is set by Beijing."

"Messages"

Right-of-center Deister- und Weserzeitung of Hamelin read the tea leaves this way (7/2): "A political event in history which offers nothing to celebrate has hardly ever been celebrated in such a pompous way as Hong Kong's unification with (China). Only the rulers in Beijing have reason to cheer. However, what they have to offer...is an ambiguous message. To the outside the message is: Not too much will change, calm down! And to the inside: Freedom will be restricted and everything else will be ordered.... The people in Taiwan, in particular, are watching with dismay the ceremonies from Hong Kong. They consider themselves the booty of the mainland Chinese and feel rejected by the countries of the West."

ITALY: "Hong Kong"

An editorial in provocative, classical liberal daily Il Foglio (7/3): "China's policy allows for growing penetration by Western economic and social models into its territory, which is still ruled according to Communist principles. It is possible that China will be 'contaminated' by the reunification with Hong Kong more that viceversa."

"Taiwan's Turn Now"

A report from Hong Kong in left-leaning, influential La Repubblica pointed out (7/2): "If there were still doubts on the meaning attributed by China to Hong Kong's reunification with its motherland, Chinese Prime Minister Li Peng yesterday expressed his opinion: The island of Taiwan will also have to be 'reunified' after Macao, a Portuguese colony, has been reabsorbed in 1999.... In sum, the reconquest of Hong Kong is only the first step in the process of rebuilding a Great China."

"Reunification With Taiwan Not Imminent"

Ugo Tramballi commented in leading business Il Sole-24 Ore (7/2): "If Taiwan declares its independence, China would automatically declare war, notwithstanding a technologically inadequate army: This is a never hidden matter of principle. And the Americans would be involved in their umpteenth Asian conflict.... But, except for the delicate moment in which they were pronounced, there is nothing new in Li Peng's words. The Chinese know that reunification with Taiwan, if it ever takes place--and they have no doubts about it in Beijing--is not for the immediate future."

RUSSIA: "Communist Regime In Hong Kong"

Fyodor Pogodin lamented in reformist, business-oriented Kommersant Daily (7/3): "No matter what Beijing says or promises, the European-style democracy in Hong Kong is going to be replaced by a communist regime, with the rulers customarily prevailing over the law and the state being in control of people's private life."

"Decolonizing May Hurt"

Vladimir Simonov filed from London for reformist, youth-oriented Moskovskiy Komsomolets (7/3): "By and large, Britain looks good in that 156-year-old story. A selfish owner, she was also a doting parent, weaning and raising what became known as Asia's New York. And when she decided to leave it, she did so in a noble way. Margaret Thatcher is probably right to have called this a natural process of decolonization. But Hong Kong is perhaps one of those rare cases when being decolonized hurts."

"Land-Gathering Costly"

Andrei Smirnov judged in reformist Segodnya (7/2): "Land-gathering may prove costly for Beijing. Regaining Hong Kong, not to speak of the multi-million-strong Taiwan, may ruin China's political system. The experiment of combining totalitarian politics with limited economic freedom, successful to date, may fail in the end."

"Greatest Event Since U.S. Ouster From Vietnam"

Andrei Krushinsky filed from Beijing for neo-communist Pravda-Five (7/2): "Hong Kong, whatever its political system, is now part of Communist China de facto. Geopolitically, this is the most serious event in East Asia since the Americans were driven out of Vietnam in the mid-1970s."

BELGIUM: "After Hong Kong Handover, Beijing Evaluates Risks"

Special correspondent Eric Meyer analyzed in independent Le Soir (7/3): "President Jiang Zemin's wisdom may have a very pragmatic reason. Earlier this year, he resorted to his first 'secret weapon' to convince the Party to let him rule the country: the campaign for a 'socialist spiritual society', which described Jiang as the regime's third intellectual guide--after Mao

and Deng--and which made him the 'heart' of the Party, whom everyone had to obey. This immodest attempt of self-proclamation did not work out...

"The Hong Kong handover appears to be Jiang's last trump card...(before) the 15th congress of the Party in October as the one who will have to successfully consolidate Deng Xiaoping's succession. Calling on Taiwan--as he did yesterday--to join a rejuvenated and, at last, united China is the new motto. No threat, no 'new deal', and, above all, no response to Taipei's request to be treated as an equal."

CANADA: "Time To Recognize Taiwan As A Democratic Reality"

In the words of the conservative Ottawa Sun (7/3), "Whither Hong Kong? Whither Shanghai? And, whither too, Taiwan?... Like Hong Kong, Taiwan is an economic powerhouse. Like Hong Kong, Taiwan has embraced democracy. But, unlike Hong Kong, Taiwan is in no rush, and has no treaty deadline, to return its power to China. And that's a very big difference.... Perhaps the time has come to help put a defensive wedge between Taiwan and Red China by recognizing Taiwan as a democratic reality which must be helped, not hindered. It's a debate which should begin today. If not yesterday."

"The Cold Truth"

An editorial in the left-of center Vancouver Sun (7/2) said, "If China maintains the jewel that is Hong Kong with its free and free-wheeling character, it will not be because of unreliable and inconsistent international pressure. It will not be because of sensitivity toward the Hong Kong people. It will be because it is in its own self-interest not to screw up."

"To Preserve Freedoms In Hong Kong"

International affairs columnist Marcus Gee commented in the leading Globe and Mail (7/2): "As the whole world looked on, the leader of the world's most populous nation made a solemn promise to guarantee Hong Kong's autonomy and respect the civil rights enshrined in its new local constitution, the Basic Law... Can he mean it? Will China's leaders really allow the six million Chinese citizens of Hong Hong to enjoy liberties that would land other Chinese in jail?... Hong Kong will not have full representative democracy, but it will have demonstrations, free speech and, with luck, the rule of law... The greatest fear of democrats here is not that Beijing will crush Hong Kong's freedom, but that it will be surrendered bit by bit by people in Hong Kong."

"The End Of Democracy May Turn Hong Kong Into A 'Velvet Jail'"

Editor Diane Francis contended in the business-oriented Financial Post (7/2): "Reality set in when a few thousand members of the People's Liberation Army moved in with their tanks just in case there were riots. There were none.... (But) the protesters at the festivities on July 1 reinforced the fears felt by many. The suspension of democracy and the rule of law may end up turning Hong Kong into a 'velvet jail,' a Singapore with its rules and regulations, but without any electoral input.... What problems will accompany the new order in Hong Kong are unknown. There will be difficulties, and any disruption there or on the mainland will create great economic volatility."

"Post-Handover Hangover"

Columnist-at-large Matthew Fisher had this to say in the conservative Ottawa Sun (7/2): "It's impossible to figure out exactly what there is for Hong Kongers to celebrate after Britain's departure... Because they don't know how else to behave, the ham-fisted emperors in Beijing have decided that their political act in Hong Kong will be to have their hand-picked provisional legislature rush through laws in the middle of the night to limit freedom of speech and freedom of assembly. The second act is to be a show of force.... It might be worth recalling how difficult and emotionally wrenching it has been for West and East Germany to reintegrate after far less time apart than Hong Kong and China.... Hong Kong's tycoons insist everyone understands each other because 'we're all Chinese.' They may not be so optimistic when the fireworks fade away."

"The Return Of Hong Kong"

The leading Globe and Mail noted (6/30): "How China treats Hong Kong...will tell us how the Chinese would act toward Taiwan, as it contemplates reunion with China. Logically, China has every reason to honor its promises; to do otherwise would run against its self-interest."

"Hong Kong And China--Fire And Ice"

In the view of French-language sovereignist Le Devoir (7/2): "How will the fire of Hong Kong and the ice of Bejing live together in the future? Will there...be an explosion or suffocation?... (Beijing's) leaders will not hesitate one second if a movement of the type of Tiananmen--or any 'liberal' contamination from Hong Kong--starts to take shape seriously."

HUNGARY: "How Will China Change?"

Second-largest circulation Nepszava featured this op-ed piece (7/2): "China's interests to the contrary, there is another thing that guarantees that the Communist model will not be introduced in Hong Kong: The fact that, in reality, China has already turned its back on this model. In China, the retreating Communist ideology is being replaced by nationalism, which, obviously, makes the neighbors of the huge country concerned. All this raises the possibility that the bipolar world order will be reborn in the near future, with Moscow to be replaced by Beijing."

SOUTH ASIA

INDIA: "PLA Misses Opportunity to Improve Image As Hong Kong Is Flooded"

The independent Times of India ran this analysis (7/3) by Hong Kong correspondent Harvey Stockwin: "On the second day of the Hong Kong Special Administrative Region (HKSAR), all the celebrations of the territory's reunification were cut short by a tropical storm, torrential rain and widespread floods.... The newly-arrived 4,700 strong garrison of China's People Liberation Army, Navy and Air Force clearly missed an opportunity to offer to help with a little supportive civic action.... An offer to help in battling the floods and landslides, had it been made today, could only have improved the PLA's image.... There is no sign at all as yet that the PLA has learnt the importance of public relations, or that it has appointed a detachment of professional public relations personnel to help them in their challenging role of becoming part of the Hong Kong Special Administrative Region--and eliminating the deep suspicions which linger from the PLA role in the Beijing Massacre."

"Hope In Hong Kong"

An editorial in the pro-economic reforms Business Standard pointed out (7/2): "The pimple on China's backside, as Mao Tse Tung once referred to Hong Kong, is now a part of the main body.... The political event is over, but the economic ramifications of the merger will only begin to unfold now.... Much will depend on the management of economic relations as well as the internal economic management in Beijing, even though the Chinese government has assured the world that it has no intention of upsetting the existing system in Hong Kong. But as everyone knows, the Chinese political system is different and subject to unexpected pulls and pressures. So even if it suits China not to mess about with Hong Kong, the possibility cannot be ruled out.... But Hong Kong is used to reversing the roles. As a colony, it...reversed the rules of colonialism: It was...wealthier than its ruler. Now from the periphery, it could change the center."

"U.S. To Monitor Transition In Hong Kong"

The centrist Hindu ran this comment by its Washington correspondent, Sridhar Krishnaswami (7/2): "The formal handover of Hong Kong by Britain is perhaps an opportunity for the Clinton administration to start a China debate that would seek to not only to lay out the broad parameters of policy with that East Asian giant, but also in negating some of the tendencies that have crept up in American foreign policy in the last four years of the Clinton presidency.... Worried about lack of access to a mega-market for American business, Washington deliberately looked the other way when it came to critical issues such as proliferation of weapons or technologies of mass destruction to Iran and Pakistan. And in the realm of human rights and democracy, the Clinton administration, while being extremely comfortable in picking loud fights in public with smaller nations...was essentially mute in its criticism of China. To the contrary, it argued that increased trade and economic interactions would loosen the political environment--as if this would not, and only sanctions will, as far as Cuba and Myanmar are concerned."

"Hong Kong's First Days--Reassuring Notes From Tung, Jiang"

Writing from Hong Kong, F.J. Khergamvala proposed this analysis in the centrist Hindu (7/2): "The Hong Kong Special Administrative Region began its first day on a note of reassurance from China and its newly chosen authorities in Hong Kong, in word and in deed. Whether this suggests a new political sophistication on Beijing's part or a tactical move before the world's media remains to be seen.... It might not be far-fetched to say that if Mr. Tung Chee-hwa believes that democratic reforms are a minority view, it is he who may lack an understanding of the street in Hong Kong.... The most charitable thing that can be said about his remarks is that Tung, whose mind has recently been preoccupied in guessing about what Beijing thinks is best for Hong Kong, may have decided to address the masters in China and sound populist at home at the same time. In fact, quite surprisingly the message delivered to Hong Kong's people by President...Jiang Zemin was far more reassuring.... In the past, Jiang has attributed Hong Kong's success principally to its connections with China; today, without naming Britain, he said that other factors responsible included 'its well developed legal system and highly efficient team of civil service, and its effective economic management and civic administration.' Doubtless this is the British legacy and the Chinese leader stood tall to acknowledge it. Broadly, the Jiang message was to address all shades of opinion and people of diverse callings."

PAKISTAN: "Hong Kong Wins Freedom"

An editorial in Islamabad's rightist Pakistan Observer asserted (7/2): "The peaceful transfer of Hong Kong to China is a matter of special rejoicing for Pakistan, first because China is a time-tested friend, and second, (because) it ends vestiges of colonialism in the region.... The return of Hong Kong will give a further boost to China's eminence as a world power particularly in the economic domain."

"The Asian Century"

This was the editorial view of the centrist News (7/2): "At one second past midnight Tuesday, Hong Kong returned to its motherland after more than a century and a half of being a British colony.... China's reclamation of Hong Kong--one of the most prosperous and dynamic economies in the world--sets the stage for China's emergence to the status of an economic superpower.... We, in Pakistan, can only derive the greatest satisfaction from our all-weather friend's rise to greater heights--both economically and politically. "

NEPAL: "Hong Kong Will Forge Ahead"

The government-owned Rising Nepal predicted (7/2): "With the Basic Law authorising Hong Kong people a high degree of autonomy, they are now the masters of their own destiny.

"Considering the Hong Kong people's vitality, dynamism, business acumen, and entrepreneurship, all of which helped transform it to one of the world's financial centers, there is every reason to expect Hong Kong, as a Special Administrative Region of China, to forge ahead in the days to come."

"A Bright Future For Hong Kong"

This was the view of the independent Kathmandu Post (7/1): "The Western media's virtual obsession with Hong Kong is...a classic example of how the West tries ever so subtly to impose its values all over the world.... If so much of hullabaloo has been created on a previously agreed upon Hong Kong handover, the Taiwan question, (which is) still unsettled, can be expected to have much wider repercussions. If handled properly, Hong Kong's future prospects looks immensely bright indeed.... The lifestyle of Hong Kong's citizens might have to change under Chinese rule. But considering how China has been able to cope with the present times despite being a communist state, the indication is that it will probably, by and large, leave Hong Kong alone."

AFRICA

SOUTH AFRICA: "Taiwan Will Be Watching"

According to the independent, centrist Pretoria News (7/1): "When the Union Jack was lowered for the last time [over Hong Kong]...it ended a period of humiliation for China and put into place one of the final pieces of its national jigsaw. The next will be Macau in 1999 and then maybe Taiwan, and perhaps sooner rather than later.... The Taiwanese...will not entertain reunification with China at this stage. But none will be looking more closely to the Hong Kong experience than the Taiwanese. And none are more aware of Taiwanese scrutiny than the Chinese leadership. Under the Basic Law...commercial and social life in Hong Kong will not change.... China has so carefully developed its own wealth-producing areas it is hardly likely to spoil such a delectable one handed to it on a plate."

"The Ball Is In Beijing's Court Now"

The liberal, independent Star argued (7/2): "The international community faces two major problems in dealing with China. It dares not ignore that country's sensitivity to the colonial past.... On the other hand, as China seeks to establish its place within the comity of nations, those nations should insist that international rules (also on human rights) apply. [President] Jiang has hinted that he understands this.... Now Beijing has to show the world that this was more than rhetoric."

"Hong Kong's Special Status"

In the view of the black, independent Sowetan (7/2): "Among the fears of investors is that under Chinese rule Hong Kong could lose its attractiveness because of bureaucracy associated with communist governments. However, China has recognized this and given Hong Kong special status.... For the sake of the economic progress of China, it is hoped that this special status remains so that capital, which is very liquid, is not rechannelled away from China to Tokyo or Singapore."

NIGERIA: "New Hope For Freedom In China"

The respected independent Guardian judged (7/2): "The lowering of the British Union Jack...in Hong Kong...is a signal of both change and continuity.... China owes it to herself and to the rest of the skeptical world (to see) that the unique challenges of the Hong Kong experiment are not mismanaged in a narrow, iron-fisted politicization. Hong Kong represents a new hope for liberty and freedom in all China."

"Hong Kong's Future Seems Assured"

The Port Harcourt-based independent Daily Sunray asserted (7/2: "The transformations in China show clearly that the world should not be pessimistic about Hong Kong's future. If anything, China would like to put its better foot forward to reassure Macao and Taiwan. If China sends the wrong signals in Hong Kong, then the 'one country, two systems' policy will be hard to sell to the Taiwanese. As China basks in the glory of taking back Hong Kong, it should respect the treaty guiding the historic handover. It is in its interest to do this. The world is watching to confirm its fears."

LATIN AMERICA AND CARIBBEAN

ARGENTINA: "The New Hong Kong Experiment"

An editorial in leading Clarin said (7/3), "The transfer of Hong Kong's sovereignty to the People's Republic of China... is, together with the collapse of the Berlin Wall and the disintegration of the Soviet Union, one of the events which marks the end of this century and shows the essence of the world's great transformations.... A new experiment starts off: that of a small state which, with a special status under the political jurisdiction of the last communist power, represents one of the booming models of advanced capitalism, as the seventh trading power in the world. In this case, globalization also has to do with a multipolar world; attention moves to Asia and the economies of the Pacific, and commercial interests pull down geopolitical barriers and political controls which no longer have to do with today's realities."

BRAZIL: "Hong Kong Antidote"

Center-right O Estado de Sao Paulo ran this analysis on its op-ed page (7/2): "The risks of absorption of the prosperous island [Hong Kong] by the bureaucratic sea (of China) are more similar to those still being experienced in the traumatic union of the two Germanies, for this is also a case where bureaucratic venom has blocked the arteries of a race accustomed to productive and organized work.... Let us hope that Hong Kong's prosperity becomes an antidote capable of convincing the Chinese to throw their old practice of paralyzing collectivism into the Pacific."

HONDURAS: "Hong Kong"

Independent, business-oriented El Nuevo Dia remarked (6/30): "At least with regard to economic issues, we predict that China will take no steps to harm the treasure it is about to receive. To the contrary, the more optimistic among us believe that China will try to assimilate the best of what it has to offer."

BARBADOS: "The Eyes Of The World Are On China"

This editorial comment appeared in the moderate Advocate (6/30): "The eyes of the international community will be on China, whose 'one country, two systems' policy will be put to the test."

For more information, please contact:

U.S. Information Agency

Office of Public Liaison

Telephone: (202) 619-4355

3/31/98

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