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Against this background, the Prime Minister's visit to China in September 1982 had aroused high expectations. Some anticipated
that the Prime Minister would achieve a once and for all solution to the problem during her visit. Such expectations were disappointed. Nevertheless, the Prime Minister achieved a great deal in her discussion with the Chinese authorities. In a joint statement, both sides agreed that talks would take place after the visit through diplomatic channels, with the common aim of preserving the stability and prosperity of Hong Kong.
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Since that visit the talks had begun in Peking.
Continuing, the Political Adviser pointed to a number of reasons for optimism about the outcome of the talks:
(ev 2010 exclu re exports)
a) The value to China of Hong Kong in its present form, particularly as a source of foreign exchange. China continued to earn in the region of 35% of its total foreign exchange (i.e. about US$6 billion) from and through Hong Kong. China operated many commercial enterprises (including the territory's second largest retail banking system) in Hong Kong. Hong Kong also provided a channel for the remittance of money to
relatives in China by people in Hong Kong or overseas
Chinese elsewhere in the world.
b)
c)
a)
There was a growing volume of Hong Kong investment in China, particularly in its Special Economic Zones.
Less tangibly Hong Kong provided an example of how things could be done efficiently by Chinese using
western methods.
An important "negative" reason for China's wanting a successful outcome to the talks over Hong Kong's
future was the question of Taiwan. It was clear that the Chinese attached more importance to reunification
with Taiwan than to the recovery of Hong Kong.
They
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