THE FUTURE OF HONG KONG
5.6 The Chinese consider the Treaties relating to the cession of
Hong Kong and the lease of the New Territories (paragraph 1.1 above) as "unequal treaties" forced on China during a period of internal
weakness and they do not, therefore, recognise them. They have,
however, hitherto regarded Hong Kong as a problem left over from history, to be settled when the time is right, and have been content
to leave things as they are, particularly in view of the practical
value of Hong Kong to them. Hong Kong is a valuable direct source
of convertible currency (estimated at approximately 30% of total
Chinese earnings of foreign exchange) mostly earned from foodstuffs,
invisibles and remittances to relations in China. It is also, as
China's only deep water port, an important entrepôt.
!
5.7 During the Cultural Revolution, widespread unrest throughout China spilled over into Hong Kong, especially in 1967/68. The
imprisonment of rioters in Hong Kong and the refusal to bend to Chinese pressure for their release led to the sacking of the British Mission in Peking. China now displays a much more relaxed and pragmatic attitude towards Hong Kong and has been notably cooperative in recent years. There are substantial, and increasing, Chinese investments in Hong Kong and large numbers of Chinese officials in, for example, the New China News Agency (NCNA), the Bank of China and many trading and other organisations. The Hong
Kong Government's regular contacts with the Chinese are relaxed and easy; there is close contact with the Shenzhen and Guangdong
authorities on matters of mutual concern.
5.8 In 1982, the Chinese Government began to focus more closely on the question of the future of Hong Kong. They publicly stated that they intended to "recover" sovereignty over the whole of Hong Kong, but that they wished to maintain its prosperity and stability. Useful contacts between the British and Chinese Governments had
taken place when Lord Carrington visited China in April 1981, and during the Lord Privy Seal's visit in January 1982. The process of consultation was stepped up during the Prime Minister's visit to
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IN CONFIDENCE