VZCZCXRO6230
PP RUEHCN RUEHGH
DE RUEHHK #1594/01 1081012
ZNR UUUUU ZZH
P 181012Z APR 06
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 6147
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 HONG KONG 001594 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EAP/CM 
NSC FOR DENNIS WILDER 
 
E.O. 12958: N/A 
TAGS: PINR PREL PGOV SOCI CH HK
SUBJECT: WHAT'S ON HONG KONG'S MIND THESE DAYS? 
 
 
All the news 
------------ 
 
¶1.  (SBU) Inevitably our reporting concentrates on major 
political and economic developments, but the full flavor of 
Hong Kong life, and the context for the major developments, 
is also important.  Hong Kong people are concerned about 
Constitutional Reform and maintaining their competitive edge 
over a rapidly developing PRC, but they also go to the 
movies, ride the subway, worry about police corruption, and 
suspect that their elected representatives may be out of 
touch with real life.  This cable presents a snap-shot of 
Hong Kong's hot topics over the past few weeks. 
 
Are Legco Members Too Detached From Average Hong Kongers? 
--------------------------------------------- ------------ 
 
¶2. (SBU) "Hong Kong Magazine," a free English-language weekly 
focused on entertainment, recently conducted a quiz of 
Legislative Council (Legco) members to see how in tune they 
were with the average Hong Konger.  The magazine asked all 60 
Legco members if they were willing to participate in the quiz 
-- twelve accepted the challenge, though one dropped out 
after performing dismally.  The quiz consisted of 12 
questions ranging from the mundane (What is the starting fare 
for a taxi?) to the deadly serious (How many people died of 
SARS in Hong Kong?)  The magazine said it got the idea for 
the quiz after hearing claims by the new "Civic Party" that 
its members were more cosmopolitan, and presumably more in 
touch with city events, than those of other political 
factions.  The magazine seems to have proved this wrong, as 
Civic Party leader Audrey Eu answered only 5 of 12 questions 
correctly.  Nevertheless, she outperformed Choy So-yuk, the 
only Democratic Alliance for the Betterment of Hong Kong 
(DAB) to participate.  Two other high profile democrats fared 
even worse.  Emily Lau of the Frontier Party answered 3 
questions correctly, and Martin Lee of the Democratic Party 
(DP) came in last, with only 2 correct responses.  Not all 
pro-democracy legislators did badly, however: DP member Sin 
Chung-kai came in second, with 6 correct answers.  And 
maverick legislator and long-time street activist "Long Hair" 
Leung Kwok-hung lived up to his reputation as a man of the 
people (and Hong Kong's favorite Trotskyite) by receiving the 
highest score, with seven correct responses. 
 
"Election" Wins Best Picture 
---------------------------- 
¶3.  (SBU) The Best Picture award at the annual Hong Kong Film 
Awards this year went to Johnnie To's "Election."  This 
cynical and entertaining gangster film (the Chinese title is 
"Hei Shehui," which might be more directly translated as 
"Underworld") upset two HK-PRC co-productions, Tsui Hark's 
knight-errant epic "Seven Swords" and Peter Chan's 
Fellini-esque love story "Perhaps Love."  "Election," 
released in late 2005 as Hong Kong debated the Government's 
proposed electoral reform, depicts a power struggle for the 
leadership of a triad gang.  The elders of the gang, led by 
Old Deng (a Tung Chee-hwa look-alike), choose Lok, despite 
the energetic attempts of "Big D" (played by Tony Leung, who 
also won "Best Actor") to supplant him by means fair and 
foul.  A key element of the story is the need for the winner 
to gain possession of the baton, held in safekeeping 
somewhere on the mainland.  While not a direct allegory, many 
details inevitably call to mind Hong Kong's own politics. 
The triads warn the police that they must be allowed to 
manage their own internal affairs, otherwise "the jails in 
Hong Kong are not big enough to hold them."  Lok is "good for 
business," and will maintain unity.  Lok wins over "Big D" 
and so prevents intra-gang warfare, at least long enough to 
expand their triad's turf into Tsim Sha Tsui.  However, when 
the impetuous and impatient "Big D" suggests genuine 
power-sharing, Lok beats him to death with a rock.  Moral: 
absolute power is best. 
 
Hard-Fought Agreement on Rail Merger Highlights the Political 
Importance of Public Transportation in Hong Kong 
--------------------------------------------- ------------- 
 
¶5. (U) Hong Kongers tend to get around in taxis or via many 
forms of public transportation (including a commuter 
escalator system).  There was therefore no surprise in the 
public focus on a series of safety incidents involving the 
Kowloon Canton Railway Corporation (KCR), which operates two 
commuter systems, including one that ferries people to the 
mainland border. 
 
¶6. (U) When KCRC Chairman Michael Tien responded to 
 
HONG KONG 00001594  002 OF 002 
 
 
criticisms about a lack of transparency over the incidents by 
pushing through organizational changes, he met with strong 
resistance from his senior staff, culminating in a letter 
from the Acting CEO, Samuel Lai, to the KCR Board of 
Directors, criticizing Tien's management style.  Tien 
responded by resigning on March 12, only to withdraw his 
resignation a few days later, accompanied by a public 
statement of support from Chief Executive Donald Tsang. 
Acting CEO Lai then resigned the next day. 
 
¶7. (U) The management spat prompted Hong Kong authorities to 
accelerate efforts towards a merger between KCRC and the 
privately-owned Mass Transit Railway Corporation (MTR), which 
operates the subway system. On April 11, the HKG agreed to 
lease KCR's assets to MTR for 50 years.  Under the terms of 
the deal, MTR agreed to pay $548 million upfront and an 
annual rental of $97 million to lease KCR's assets.  The 
agreement would generate more than $5.2 billion in revenues 
for the HKG over 50 years, and was expected to cut rail fares 
by about 10-15 percent.  Chief Executive Donald Tsang praised 
the deal, saying it would create a first-class rail system 
with better potential to expand into the mainland.  In 
response to criticism that the HKG was selling its assets too 
cheaply, MTR Chief Executive C.K. Chow said that was a moot 
argument since the government would still own KCR's assets. 
While most politicians said they support the merger, some 
called for larger fare reductions given the expected cost 
savings.  The proposed 50 year phase-in has also been 
controversial: some argue it is longer than customary, 
although everyone in Hong Kong can think of at least one 
other 50 year phase-in arrangement. 
 
Shootout Linked to Illegal Police Gambling? 
------------------------------------------- 
 
¶8. (SBU) Media reports continue to insinuate that the police 
are engaged in some sort of cover-up related to a March 17 
shootout that left two officers dead and one seriously 
wounded.  The shootout, which has been front-page news in 
Hong Kong for several weeks, occurred when an off-duty police 
officer allegedly attacked two other officers in a Kowloon 
underpass.  The police say their investigation revealed that 
the off-duty officer )- who died in the attack -- was 
attempting to steal the other officer's weapons and 
ammunition.  However, media reports allege that the officers 
had some sort of financial dealings, possibly related to 
illegal soccer gambling among police.  The police confirmed 
that they had launched an internal investigation into 
allegations of illegal soccer gambling by officers six years 
ago, but denied that they had any information linking the 
shooting to police gambling.  While the Hong Kong public's 
opinion of the police remains high, especially in the wake of 
their performance during the WTO ministerial in December, 
several legislators have called for an independent 
investigation into the shooting. 
Sakaue