CHINA IN TURMOIL : Looking to ‘97, Hong Kong Backs Democracy

Housewives serving dumplings to student demonstrators, elderly Chinese women waving banners in support of protest, taxi and bus drivers taking part in a transit slowdown to show solidarity with a pro-democracy movement.

This has been Hong Kong over the past five days as the people awakened to a new political consciousness. Hundreds of thousands of Hong Kong citizens, old and young, have turned out at peaceful rallies to support the student demonstrations in Beijing.

An unprecedented 600,000 people--the largest demonstration in the history of Hong Kong--marched Sunday, calling for the resignation of Chinese Premier Li Peng. Another 60,000 turned out three days later at a rally in support of the pro-democracy movement in China.

Hong Kong residents, known for their political apathy and preoccupation with making money, with selling Rolex watches and providing a glitzy shopping environment, are coming to terms with the British colony’s eventual return to China in 1997. And this week’s demonstrations were the most dramatic evidence that the people of Hong Kong want assurances and safeguards for their democratic rights after 1997.

Confidence Wavered

But even as Hong Kong residents asserted themselves, their confidence wavered as they waited to see who will emerge as China’s leader.

“People in Hong Kong are very pragmatic people who are not very interested in political theories,” said Michael C. C. Sze, director and chief negotiator of Hong Kong’s Trade Development Office. “But when their fundamental rights are challenged, they will come out, as in the demonstrations. . . . People are very clear about our future--which, like it or not, is inextricably linked with China.”

The uncertainties of whether Beijing will keep its promise of allowing Hong Kong to maintain its economic system has caused thousands to flee Hong Kong, to seek “insurance” by residence in other countries.

But in the wake of this week’s pro-democracy demonstrations, Hong Kong’s Executive Council and Legislative Council held a special meeting Wednesday and recommended that direct elections to the legislature be accelerated. They suggested that 45 members of the legislature, half the total, be elected directly by the people by 1997 and that all 90 members be so elected by 2003.

The proposal will go to a committee drafting a basic law, or constitution, for Hong Kong.

Despite increased political activism, confidence among Hong Kong residents is declining. A poll published by the South China Morning Post found that 92% of the island’s residents want more provisions for democracy in the basic law.

Fifty-seven percent said recent events in China have eroded their confidence and that they no longer believe that Beijing will adhere to its pledge to Hong Kong.

Chinese Visit Postponed

Adding to the uncertainty, Chinese officials Wednesday postponed a visit scheduled for next week for continued negotiations on how Hong Kong will be governed when China takes over.

The uncertainty continued to affect the Hong Kong stock market. The Hang Seng index declined 256.22 points Thursday to close at 2,752.51. It was the fourth consecutive day of sharp price swings. The index plunged 339.06 points, or 10.8%, on Monday, then recovered 251.25 points on Tuesday--only to fall 58.92 points Wednesday.

“Economically, Hong Kong is a very promising place,” said K. C. Kwok, a senior economist at the Hongkong and Shanghai Banking Corp. “The danger is from the political side--1997 is something that hangs over the city. The confidence of Hong Kong depends on how people see which way China is moving.

“China has to convince the outside. Confidence is like a piece of glass. It’s easy to break, but difficult to mend.”

Barrie Wiggham, the Hong Kong government official known as “Mr. 1997” because he is overseeing the transfer of sovereignty over Hong Kong to China, says he expects China to honor its commitment to Hong Kong.

‘Useful to China’

“Hong Kong is always useful to China, never more so than now,” he said. “China gets one-fourth of its foreign currency from Hong Kong. It sees Hong Kong as a window to the world. (The Chinese) can get all the advantage by keeping at arm’s length.

“The PRC (People’s Republic of China) wants a piece of the action and is investing in Hong Kong. The Chinese are putting their money where their mouth is.”

China has made a series of investments in Hong Kong over the past decade, and today China is the third-largest foreign investor in Hong Kong manufacturing, after the United States and Japan.

China owns a 10% interest in Cathay Pacific Airlines and is an investor in a new air carrier called Dragonair. China is also participating in construction of the new eastern harbor crossing project, which is costing $385 million and is to open in July.

The Bank of China’s new $15-million building in Hong Kong is the sixth-tallest building in the world.

“It has a symbolic meaning in that it is the tallest building in Hong Kong and it overshadows the Hongkong and Shanghai Bank,” Kwok said.