1
}
香港總督府
Das Alen
SECRET
GOVERNMENT HOUSE
HONG KONG
RA
7 July 1980
HKK нк коно
RECESS
LEASES AND THE FUTURE OF HONG KONG
12 NO.
-3 SEP 1980
FIDER
FA
TAW519
See
1.
I promised to put in a letter further thoughts on where we now stand and where we should go on land leases and the whole question of Hong Kong's future.
2. We have made considerable progress. The Chinese accept that a capitalist society in Hong Kong is of benefit to them. They accept that confidence plays an important role in preserving it. These points were confirmed by what Vice Premier Gu Mu said to Philip Haddon-Cave. It is useful that they also accept that the time has come to think about the problem of the long term future, even though not yet to produce concrete proposals about how to deal with it. the distinction drawn by Gu Mu between the long term basic issue of the state of the New Territories (which was for thought and discussion but not for immediate solution) and technical problems", which could be dealt with straight away and on a continuing basis, could also be useful in providing a way forward.
17
11
Finally,
3. Nevertheless, and we must not overlook this, the Chinese seem to be envisaging a capitalist society in Hong Kong which they themselves direct. They may not have reached any firm decision on this, but it was a view strongly implied by what Gu Mu said and is not inconsistent with what Deng had earlier said to me. It would not be surprising if they tended to assume such a scenario. They may well see the special economic zone at Shum Chum as a place where capitalists, both Chinese and foreign, will learn that they can operate successfully under Chinese rule. It may take time before they realise that, for many years to come at least, essential elements of a successfully capitalist Hong Kong will be UK management and UK law and a currency separate to China's, and the confidence of investors that all these will continue. There may come
A E Donald Esq CMG
Foreign & Commonwealth Office
SECRET
/ a time
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