in Hong Kong's future.
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Premier Hua said that the Chinese had
given some thought to the question and had given their reply.
They had to be very careful what was said about Chinese territory.
But they did have very good relations with HMG and the British
authorities in Hong Kong. It had been agreed that the Chinese
Government would keep in touch with the British Government and
would take account of the anxieties of investors even after the
problem had been resolved.
Governor's talk with First Director of New China News Agency (NCNA), Hong Kong
9.
The next discussion of the issue was during a dinner on
1 November 1979 the Governor gave Mr Wang Kuang, the First Director
of the New China News Agency. Mr Wang suggested that the solution
to the problem lay in economic cooperation rather than in a political
or legal framework. The Governor doubted whether a solution simply
based on Vice Premier Deng's assurances would be sufficient.
Financial Secretary's visit to Peking
10. The matter was raised again with the Chinese during the
visit of Sir Philip Haddon-Cave, the Hong Kong Financial Secretary,
to Peking in May this year. During a meeting with Vice Premier
Gu Mu, Sir Philip pointed out that there were some very large
and expensive projects which could only be financed by an approach
to the international capital markets. The question was whether
in the mid-1980s these markets would be prepared to make long-term
loans. Mr Gu said that he understood that the problem of confidence
concerned the future of the New Territories and what should be done
as a next step. As he understood Vice Premier Deng's explanation
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