**As the last days of colonial Hong Kong ebb away, confused signals are coming from the committee planning the takeover by China. The man waiting in the wings to become Chief Administrator, Tung Chee-hwa, is pressing ahead with moves to modify laws designed to protect human rights and freedom of expression. But dissenting voices are already emerging — even from his No. 2, writes Derek Ingram from Hong Kong.

COME what may. Hong Kong is moving through the last month of British colonial rule in typically extrovert style. The Year of the Ox has arrived, the Hang Seng share index has never been higher, and well-heeled crowds packing the restaurants, clubs and bars spill into the streets well into the early hours.

It seems difficult to conceive that in a matter of weeks the Chinese Government will be lords of tjiis blazing. Techni-. , color zapitaBet anthill ■—.until, J you remember that, these days, cities such as Shanghai, Guangzhou and Beijing are now in the same capitalist mode, under an administration that still calls itself communist.

That is surely why Hong Kong's stock exchange is so bullish, and confidence about the future is high, despite very real and rapidly-growing anxieties about continued freedom of expression and some semblance of democracy remaining after China takes over the colony on July.

Fears were voiced several times during the last major Commonwealth event to be held in Hong Kong before the handover — the Commonwealth Journalists' Association conference at the end of January. Mak Yin-ting, who chairs the Hong Kong Journalists Association, said: "There is one simple truth — we cannot give up our quest for freedom of expression."

The Chinese are not afraid of the capitalism of Hong Kong, having fully embraced it themselves in the past decade. Their fear is wholly political. The economic influence of Hong Kong on the mainland has been profound, but. so far. the political influence has been kept at bay. With the transfer of power, that may not be possible for much longer.

Chinese moves to replace the elected Legislative Council with an appointed Provisional Legis-

lature, to reduce the scope of the Bill of Rights, and to replace the Public Order Ordinance and societies Ordinance look like panicky attempts to stay the tide of Western-style democratic influences washing across the border.

The reasons are understandable. Just as have been the reasons for the British attempt — albeit at the 11th hour — to entrench as much democratic freedom as possible in Hong Kong in the hope that some of it will stick.

Some "old china hands" in Britain's Foreign and Commonwealth Office have been

fiercely critical of Britain's stance on the handover. They include the former British ambassador to Beijing. Sir Alan Donald, who said recently that China had no outright objection to democracy, but was concerned that it should not be introduced much faster than on the mainland and so cause premature pressures for reform.

He said: "They were saying. 'Please don't do it at such a breakneck speed that it frightens the horse from our stables."

Bluster on both sides looks set to continue long past 1 July, .while the businesspeople drive ahead regardless. Business eyes

now turn first to Beijing, as deals are consolidated with Chinese financial institutions.

Hong Kong has to do battle with Shanghai and other mushrooming Chinese cities, though few accept a popular argument that it will becomejust another Chinese city. This would be to dismiss the extraordinary dynamism of a community unlike any on the mainland, and to forget that it is coming from a different direction.

Of much greater concern — though not. it seems, to the business moguls — is the r—-< bility of a slow erosion of

dom of expression.

Governor Chris Patten is feeling let down. When the embarked on his democratic re-fopns in 1992. the business community gave him widespread support. In a some- ■ what bitter speech at the end of January, he said he had faxes in his bottom drawer — "that 1 promised them I'll keep secret" — to prove it.

These people had soon eaten their words, ne said." For some of them, when China beat the drum, they thought it was time to run for cover."

Patten, a former chairman of Britain's Conservative Party, has been at loggerheads with Hong Kong businesspeople for some time. He feels that the tycoons who became members of the Preparatory Committee — set up by China to arrange the takeover from Patten's Legislative Council — are helping to undermine civil liberties and democratic rights.

But it is far from certain yet that the Committee will turn out to be the Beijing poodle it is predicted to be. In a meeting in early February a split began to appear. Ten members abstained and one voted against moves to scrap 14 laws and sections of another 11.

The man who will succeed Patten in July, Chief Executive-designate Tung Chee-hwa. will have at his side two key figures from British days — his deputy. Chief Secretary Anson Chan, and a man who served four governors as a local adviser, 79-year-old Sir Sze-yuen Chung.

Chan, who is crucial in keeping the unity of the civil service, has already expressed her "disappointment" at the moves to

amend the laws. She said they sent "an extremely negative signal" to the United States, which has been telling Beijing that repeal of part of the Bill Of Rights would threaten stability.

Tung has named 12 of the 16 members of the first Executive Council, or Cabinet, that will take over on 1 July. In addition to Anson Chan, he is keeping two members of Patten's team. The rest are closely affiliated to China. Chung was named as council convenor.

Compared with Patten's ex, *cutive. (he Council' contains more professionals and is not as dominated by business people. But the Democrats, who won 19 seats in the Patten elections in 1995. have no voice.

There are signs that the Chinese are modifying their stand on some issues — for example, all serving district board and municipal council members are now likely to stay in office through the transition. Earlier. Beijing had called for these tiers of the Hong Kong political structure to be dismantled.

The British, meanwhile, are tiying to ensure that their profile remains high after July. A prominently-sited $31 million Consulate-General and British Council building has recently been opened. It will house 150 — the biggest British consulate.

Whatever that future holds, everyone is determined that British rule will go out with a bang. Hotels and airlines are booked to overflowing for June-July for tens of thousnads of visitors.

As well a grand fireworks party, one attraction will be a 10,000-foot "dragon", stretching inland from the waterfront in Kowloon. The 400-strong pro-China organisers are seeking to Kinto the Guinness Book of rds as the world's longest string of decorative lights.

— GEMINI NEWS

DEREK INGRAM was Editor of Gemini News Service for 28 years and is now Consultant Editor.