CONFIDENTIAL
b. Writing in the Chinese Law Journal, the Chinese lawyer, Chen Tiqiang (attached to the Institute of Foreign Affairs), cited statements by Ye Jianying and Peng Zhen on policy towards Taiwan, including the latter's reference to China's intention of adopting flexible policies and giving "consideration to the actual situation in Taiwan and to the wishes of the people of Taiwan and other personages concerned". Chen said that the Hong Kong issue was 'partly similar to Taiwan'. He cited examples of special regulations operating in designated areas, including the practice of European continental law in Quebec Province while the rest of Canada practised English common law, the special customs and tax regulations for duty free zones in various countries, the special systems operating in China's special economic zones, and the special land reform measures adopted in Tibet in the 1950s which differed from those applied in China generally. Chen added that the following 'similarities' applied to Hong Kong and Taiwan:
(i) Both are Chinese territory which had not yet returned to or been reunified with the motherland and which must return to and be reunified with the motherland.
...
(ii) Their reunification with the motherland was an issue subject to Chinese sovereignty, in which there should be no foreign interference.
(iii) China would take into account the historical and practical conditions and handle the issues in accordance with the views of the people of the whole country and of the territories concerned, and would for example leave the social and economic systems and way of life unchanged.
(iv) The system of special administrative regions as stipulated in Article 31 of the Chinese Constitution provided a legal basis for the special arrangements to be devised for Taiwan and Hong Kong.
Chen concluded that although the Chinese Constitution did not directly mention Hong Kong, at least the spirit of its stipulations concerning Taiwan was 'of reference value' in handling the Hong Kong issue and was beneficial for eliminating the apprehensions of residents of Taiwan and Hong Kong so that they would work more positively for reunification.
March 1983
Zhou Nan, Assistant Minister of Foreign Affairs, told a TUC delegation on 29 March: 'The Chinese Government have stated that China would recover sovereignty when conditions were right and there should be no argument about it
The prosperity and stability of Hong Kong would be preserved after the recovery of sovereignty and the Chinese Government would pay special attention to the actual situation there so that there will be no change in the economic and social systems or in people's lives
Consultations between the two Governments have not yet touched on substantive issues
Hong Kong should be treated not as a colony, but as the product of unequal treaties imposed by British imperialists. The smooth settlement of the issue would benefit both Chinese and British people and it was to be hoped that it could be resolved through joint efforts.... The Chinese Government was clear about the need to protect the interests of the working people of Hong Kong who were part of the Chinese people.
6 CONFIDENTIAL
/April 1983