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HONG KONG
1. With a population of 4,700,000, Hong Kong is by far the
most important of our remaining dependencies. It is an important
financial and commercial centre and has a significant trading role.
Because China regards Hong Kong as Chinese territory the colony can
never become independent; for the same reason it does not have a
representative form of government.
Relations with China
2.
Hong Kong/China relations are better than at any time since
the Communists came to power in China. Hong Kong provides over a
third of China's foreign exchange and is an important source of
financial and commercial expertise. The territory accordingly has
a key role in China's modernisation plans, and the maintenance of
its stability and prosperity is a major Chinese interest. Recent
developments include an official visit by the Governor of Hong Kong
to China, the first since 1949.
3.
and
The Chinese have been trying to reassure local opinion
foreign investors-about Hong Kong's future. The fact that the
lease on the New Territories is due to expire in 1997 does, however,
create a practical problem which cannot be dealt with by general
assurances.
The increasingly short span of property leases in that
part of Hong Kong could soon begin to deter new investment unless
some means can be found to remove the significance of the terminal
date. A possible solution was put to the Chinese leadership during
the Governor's visit to Peking in March. A substantive Chinese
reaction is awaited.
/UK/Hong Kong