CONFIDENTIAL
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Mr Atkins commented that it was important to maintain commercial confidence in Hong Kong. Lord Kadoorie agreed. What was needed was mutual confidence between China and Hong Kong. He saw a phenomenon developing which could be described as a reverse takeover in the expansion of the special economic zones in China to the north of Hong Kong. Given time, Hong Kong could become the main city of a major industrial area much bigger than the Territory itself.
5. Mr Atkins asked about commercial attitudes to 1997. When would investors begin to show their doubts about the viability of the Territory?
6.
Lord Kadoorie said that about 5 years ago he would have answered that we had almost reached that point. Now, however, no-one seemed particularly concerned. He thought that most people saw themselves developing on present lines and remaining in practice as a 'free economic zone' of China.
7. Mr Atkins commented that that depended on the maintenance of a gentleman's agreement with China. Could we do business on that basis? Lord Kadoorie said that he thought that this was possible and that recent Chinese investment bore out this view.
8.
Mr Atkins said he thought it unlikely that the Chinese would be prepared to sign a new lease for the New Territories. Lord Kadoorie agreed. Mr Atkins asked whether outside business interests could be convinced of the viability of Hong Kong.
9. Lord Kadoorie said that they could. The example of EXXON which had undertaken to invest US$60 million in the Castle Peak project was a clear sign. Many major undertakings recognised that the best place to do business in China was in fact Hong Kong.
NATIONALITY BILL
10.
Lord Kadoorie said that his main concern was with people who had come to Hong Kong from Shanghai and other parts of China and acquired British nationality. Where would these people stand if Hong Kong at a later stage ceased to be British? Would they be stateless? They were not seeking the right of abode in the United Kingdom but wanted to be sure that their British passport would remain a valid and accepted travel document. His own experience in dealing with refugees from Shanghai after the war had convinced him of the importance of avoiding large groups of stateless people.
11. Mr Atkins thanked Lord Kadoorie for coming and said that he looked forward to seeing him when he visited Hong Kong.
DISTRIBUTION
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FED
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Mr Donald
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JNU
CONFIDENTIAL
cc Governor, Hong Kong (Personal)
се DR Ford Esq Hong Kong Government Office, London (Personal)