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necessity to preserve its own authority in Hong Kong and the need
not to antagonise China to such an extent that the latter is driven
to change her policy of tacit acceptance of the status quo. So far
this balance has been achieved with remarkable success.
Effect of the approach of 1997
46.
Quite apart from the possibilities discussed in the preceding paragraphs of the Chinese seeking to eject us from Hong
Kong before 1997, the very existence of a chate on which the lease of the New Territories expires is already beginning to cast its shadow
before it. This shadow will, in the best circumstances, grow
increasingly large and the life of Hong Kong, both economic and social, will become increasingly stunted.
47.
Annex B sets out some of the effects of the approach of
1997, including some which are already apparent.
48. As these effacts become more marked Hong Kong may require assistance from the U.K. in a number of ways (possibly economic
assistance if industry and trade stagnates, the buttressing of
the civil service and action to ensure that communications with
the outside world are maintained at an appropriate level). Departments of H.M.G. should give sympathetic recognition to these needs as they develop.
49.
Further study of this factor will be required in
consultation with a wider circle in Hong Kong than can be
associated with the preparation of this paper. Given the limited circle within which, for security reasons, the study must be confined, it must be accepted that the outcome will not be a study in depth.
50. Another aspect of the approach of 1997 is the bearing this
has on the social policies which we pursue in the meantime.
Hore we are faced with a dilemma. If we administer the Colony
in a manner which accords fully with our own concepts of social justice we will widen the gap between Hong Kong and China and thus may make the transition to Chinese rule more difficult for the inhabitants of Hong Kong. But deliberately to keep down rising standards in an attempt to equate them with conditions in China is not only repugnant but carries with it the risk that orderly government in Hong Kong may be made more difficult. This is a touch practical and, indeed, moral problem which will need to be
further studied in consultation with the Governor.
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/F.