CRS-11
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Beijing's basic political and economic interests in Hong Kong also
seem to complicate the situation as they appear to pull PRC policy in
contradictory directions. Politically, Beijing leaders reportedly are.
pushed by idelogical and political imperatives stemming from the deep and
bitter anti-imperialist experience of China over the past century to re-
assert strongly their sovereignty over the colony and to eliminate vestiges
of British colonial rule. A firm stand regarding sovereignty over Hong
Kong is also thought to be needed in order to clarify to leaders with an
interest in other territories claimed by China (e.g. Taiwan, Vietnamese-
controlled islands in the South China Sea, and Soviet controlled territory
along the Sino-Soviet frontier) that China is determined to reassert its
right to rule lands it regards as Chinese.
At the same time, however, Beijing appears to have important political
reasons to avoid a strong reassertion of authority that could disrupt the
social and economic status quo in Hong Kong. In particular, any PRC actions
which promoted a serious downturn in Hong Kong's economic prosperity or
its social-political order would probably undermine Beijing's repeated
pledges to the people on Taiwan that reunification of Taiwan with the main-
land would not involve any change in the island's social or economic life.
As a result, it might increase support in Taiwan and abroad for a future
status for the island independent of mainland control. Conversely, if China
were to succeed in reasserting sovereignty over Hong Kong with minimal dis-
ruption to the social-economic order there, its promises of "peaceful re-
unification" of Taiwan would appear to take on greater credibility both
in Taiwan and elsewhere.