布政司署

香港下亞厘畢道

SECRET

117

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

**** Our Ref.: TSX 1/78

* YOur Ref.:

RJT MCLAREN ESQ

HKk oud!!

RAIMITED &

INL

2 5 JUN 1979

PA

подобя

HONG KONG & GENERAL DEPARTMENT

F CO

Dear Robin,

FUTURE OF HONG KONG

14 June 1979

بر پیام

ви

Quatre ₤236 251

Ms loniali

We were interested to see that the weekly English edition of the "TA KUNG PAO" on 14 June included long extracts from an article written by Carl Gustavson of the Chase Manhattan Bank here for the "Hong Kong Industrial News", particularly the following assessment on Hong Kong's position in 1985:

2.

#1

Politically, an understanding would likely have been worked out concerning Hong Kong. The assumption of the day will be that the status quo will extend de facto beyond 1997, the year when the lease on the New Territories theoretically expires. With the uncertainty concerning Hong Kong resolved, there will be a growing collective identity of the local-born and reared populace, to whom Hong Kong is home. Concurrently, the labour force in Hong Kong will become more concerned about its place in society and the future of that society. A sense of commitment to Hong Kong that has so far been lacking will gradually emerge.

"

It is, of course, fairly standard practice now for Left-wing papers here to pick up optimistic assessments about Hong Kong's future. After the publicity given to Vice-Foreign Minister Song Zhiguang's remarks in Peking it is not surprising that these should now include references to 1997. However, as you will be aware from David Wilson's letter of 12 June, the significance of references to 1997 is being down-played in local Left- wing circles.

Yours ever,

Dain

(I C Orr)

CC

R C Samuel Esq FED

F CO

TJ B George Esq Peking

SECRET

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