CODE 18-77

SS 8/78

Reference

1997 and Business Confidence

Attitude of Chinex Government

Chinese position based in

nahinališki

and legal ansiduations. Oversimplification li

that do not recognise the treaties ceding of leaving Hory Kory territy.

say

But claim treaties unequal. HK temprainly

under British adminishatin. Position to be affled when auditions are

ripe

However Chineor benefits from Hong Kong very great. Freign exchange earnings (30-40% much most important.) use of port, airport, financial institutions. Majir investment. Vested interest in stability and prosperity.

# Clearly keeping options open; that

might

Del

form of special zone.

they most reative possibly

future

as

Reir own

Hey Kay in

But speculatin

unpurityul. Sure Chinese do not know

eventual view. They

But

are howeve

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