UNITED KINGDOM CONTROL OF HONG KONG'S TRADING POLICIES

It has been accepted that in the conduct of its external

commercial relations, the Hong Kong Government must act in the

best interests of the local population. In doing so, however,

it keeps in close consultation with Her Majesty's Government.

FUTURE OF HONG KONG AND CHINESE ATTITUDE

THE FUTURE OF HONG KONG

Her Majesty's Government has every confidence in the continuing

development of Hong Kong and will continue to administer it in the

interests of those who have chosen to live there.

THE END OF THE NEW TERRITORIES LEASE IN 1997

1997 is still quite a long way ahead and a great deal will

have happened by then not only in the area but in other parts of

the world as well. It is not possible to predict what the

circumstances will be so far in the future.

CHINESE ATTITUDE TO HONG KONG

It is apparent that the Chinese Government do not wish to

disturb the present situation.

SINO

STATE OF SINO-BRITISH RELATIONS OVER HONG KONG

Sino-British relations are good. There is practical cooperation

on Hong Kong over a wide variety of fields. (If pressed) Her

Majesty's Government see no reason why Hong Kong should become

an issue between ourselves and the Chinese Government.

OTHER MATTERS

THE POLICY OF RETURNING ILLEGAL IMMIGRANTS TO CHINA

The position remains as indicated in the reply I gave on

21 January 1975. (If pressed) Her Majesty's Government is satisfied

that the policy of refusing entry to illegal immigrants from China

is heing carried out by the Hong Kong authorities in a humane

manner

/REASONS

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