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concentrate on arrangements to maintain the
stability and prosperity of Hong Kong. In our view
this means the presentation of the maximum degree
of continuity in the administration of the Territory
We are ready to find new arrangements for the future
and are not inflexible on any point, but we must be
sure that what is agreed will genuinely meet
Hong Kong's interests and is acceptable to the
Hong Kong people and to Parliament.
3.
Since the Prime Minister's visit, the Chinese
have through indirect channels been putting out
propaganda designed to persuade the people of
Hong Kong that the assumption of sovereignty by
China is inevitable, and that the incorporation of Hong Kong into a special autonomous region of
China could take place with a considerable degree of
autonomy and without major changes in the social
and economic systems. While the campaign may have
had some effect, most Hong Kong Chinese remain
highly sceptical, in view of China's recent turbulent
history and record. The basic problem is that
Hong Kong people are looking for guarantees against
Chinese interference, and these general assurances
do not provide anything like the security which the
link with Britain offers. The general mood in Hong
Kong seems to have stabilized a little in recent
months, but confidence remains fragile and could be
seriously affected at any time by ill-judged Chinese
statements.
The Chinese ideas do not have any official
stamp at present but they are widely publicised and
4.
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