Political Tensions Escalate Over Hong Kong

HONG KONG —  Political confrontation between Hong Kong and China escalated Tuesday as Gov. Chris Patten vowed to push forward with democratic reforms, despite Chinese threats that are affecting the colony’s stock market.

The blue-chip Hang Seng index dropped 5.3% Tuesday in response to a statement, issued by Beijing after the close of trading Monday, declaring that the British colonial government has no authority to enter into contracts extending beyond Hong Kong’s 1997 reversion to Chinese sovereignty.

The index had already tumbled 2.9% Monday in response to a similar but more narrowly focused threat made Friday. Tuesday’s loss was the biggest daily drop since last year’s Moscow coup attempt against then-Soviet President Mikhail S. Gorbachev.

The Chinese statements are viewed here as a blatant attempt to pressure Patten to abandon his proposals for political reform.

London and Beijing reached agreement in 1984 that Hong Kong will return to Chinese sovereignty in 1997. But the two sides now are locked in a dispute over how much movement toward democracy China will tolerate before then.

Beijing, which fears the spread of demands for democracy from Hong Kong into south China, has immense potential leverage over the colony. Hong Kong depends on China for basics such as food and water, while more complex cross-border economic ties underpin the colony’s prosperity.

But Hong Kong has always survived because its existence benefits China, and it is not at all clear that Beijing would carry out threats that damage China’s own interests.

Speaking to the colony’s Legislative Council on Tuesday afternoon, Patten appeared entirely undeterred in his determination to stand up to Beijing.

“I honestly don’t believe that the right way for me to respond in present circumstances is to abandon a position which I believe to be rational,” Patten said. “. . . But I repeat that I remain keen on dialogue, keen on rational discussion and keen on mobilizing as much consent as possible for the arrangements that will need to be in place for (Legislative Council elections in) 1995.”

Providing the clearest timetable yet for his proposals, which would broaden democratic procedures for choosing members of the legislature, Patten said he plans to put them to the Legislative Council by February’s end. He played down the seriousness of Beijing’s brief Monday statement, noting that it reiterated that private investment in Hong Kong remains welcome.

Holley is a Times staff writer and Courtney is a special correspondent.