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Taiwan could still enjoy a special status and local autonomy, and even her own armed forces, even though she would be part of China. There could never be two Chinas or one and a half Chinas. This was the Chinese position on Hong Kong and Macao as well as on Taiwan. This was a long standing policy. They had adopted it because they needed Hong Kong. The' policy was beneficial to socialist construction and the four modernisations. It was as simple as that.
The
3. The Governor thanked Mr Deng Xiaoping for his welcome and for his remarks. His visit had arisen out of a meeting with Li Qiang in Hong Kong. Li had spoken of Hong Kong's usefulness to China's economy. There was a requirement for close cooperation. Talks in Guangzhou and in Peking had demonstrated that there was mutual benefit from cooperation on industry, transport and tourism. Governor agreed with the Vice-Premier that Hong Kong was of benefit to socialist construction. Hong Kong was an unusual place with an extraordinary concentration of industrial capacity, commercial knowledge, tourism and communications. It had its problems. was dependent on export markets and the economies of those countries. Trade promotion was of vital importance, and Sir Y K Kan had special responsibility for that. Hong Kong was dependent on China for water and he had discussed solutions to this problem in Guangzhou.
It
The Governor was grateful for China's help in this matter. There were also problems of land. Hong Kong was both over-crowded and mountainous. Reclamation to make land for new towns was necessary. But so long as investment continued there was the prospect of great prosperity. Each family in Hong Kong would consume US $100 of Chinese goods each month. There was much scope for other trade and for increased cooperation.
4. The Governor continued that the Vice-Premier had spoken of the long term future and had made the position very clear.
That was a matter between the CPG and HMG. It was frequently said that the problem could be solved when the time was ripe. But Hong Kong faced an immediate problem, concerning the leases issued to people in the New Territories which ran into tens of thousands, and were being issued each month by the hundred. They were all written with a
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