ན་
AUSTRALIAN HIGH COMMISSION
INWARD CABLEGRAM
3-0.CH122186
THE LARGEST, THE MOST SIGNIFICANT FINANCIAL CENTRE IN THIS REGION. THE TRANSILLON, ONE PRESUMES IT WOULD TAKE PLACE IN SOME FORM, FROM BRITAIN TO MAINLAND CHINA WILL BRING A NUMBER OF CONSEQUENCES IN ITS WAKE. DEPENDING ON HOW THAT TRANSITION IS ADDRESSED, HOW IT TAKES PLACE AND HOW IT FUNCTIONS AFTER 1997, THEN THERE WOULD BE A NUMBER OF CONSEQUENCES FOR THE REGION AND PARTICULARLY FOR US AS PART OF THE REGION. IF IT WERE TO RE BADLY HANDLED THEN AUSTRALIA WOULD HAVE A JUSTIFIABLE CONCERN ABOUT THE CONSEQUENCES OF THAT. IF IT IS SENSIBLY AND SUCCESSFULLY HANDLED THEN THERE WILL BE SUSTAINED STABILITY WITHIN THE AREA. MY PURPOSE IS TO TRY TO FIND CUT HOW PEOPLE FEEL IN HONG KONG ABOUT THE PROSPECTS FOR THIS PROCESS, ANTE, AT THE POINT OF, AND POST. THE IMPRESSION I GET IS THAT THERE IS A CENERAL FEELING THAT THE PROCESSES WILL BE MANAGED, SUCCESSFULLY. I DON'T WANT TO INTERPOLATE HERE THAT MY CONSULTATIONS ON THIS MATTER ARE NOT NOVEL. WHEN MR WU, THE FOREIGN MINISTER FOR CHINA, WAS IN AUSTRALIA ABOUT SIX OR SEVEN WEEKS AGO I HAD SEVERAL EXTENDED DISCUSSIONS WITH HIM ON THIS SUBJECT. WHAT HE SOUGHT TO IMPRINT ON MY MIND WAS THE CLEAR DETERMINATION OF CHINA TO ENSURE THAT THERE WOULD BE A SMOOTH PROCESS. HE STATED THAT THERE WOULD BE NO DOUBT THAT POST-1997 HONG KONG, UNDER WHATEVER THE ARRANGEMENTS WOULD BE, WOULD FUNCTION THEN AS IT HAD FUNCTIONED UP UNTIL THAT POINT, AS IT FUNCTIONS TODAY. HE SAID THAT CHINA RECOGNISED THAT FOR HONG KONG TO BE SUCCESSFUL IT WOULD HAVE TO OPERATE AS A FREE MARKET CAPITALIST SYSTEM. THAT WAS SOMETHING THAT WAS ACCEPTED AND THAT CHINA WOULD SEEK TO WORK OUT ARRANGEMENTS WHICH WOULD ALLOW AN ADMINISTRATION, A SEPARATE ADMINISTRATION AND, I RECALL I BELIEVE, AN AUTONOMOUS OR ONE WITH AUTONOMY WHICH WASN'T SPECIFIED, TO FUNCTION HERE.
REGARD ITS FAILURE TO MANAGE A SUCCESSFUL TRANSITION AS A VERY SERIOUS SETRACK TO ITS OWN SELF INTEREST. I CAN UNDERSTAND THAT FOR A NUMBER OF REASONS.
I AM SATISFIED THAT THE BRITISH AUTHORITIES ARE COMMITTED TO SEEKING TC ENSURE THAT THAT TRANSITION PROCESS IS SUCCESSFUL AND THAT THE POST-1997 PERIOD WILL PROTECT THE INTERESTS OF THE PEOPLE OF HONG KONG. WHATEVER DIFFERENCES I MIGHT HAVE WITH MRS THATCHER IN SOMC AREAS OF HER POLICIES, I HAVE TO FREELY ACKNOWLEDGE THAT SHE IS STEADFAST IN HER PURPOSEFULNESS AND THAT THERE WOULD BE NO DOUBT ABOUT HER COMMITMENT TO SEEK TO ENSURE THAT THIS TRANSITION PROCESS WAS SMOOTH AND SUCCESSFUL. THAT IS, JUST AS THE CHINESE HAVE STRESSED TO ME THAT THE BEST INTERESTS OF THE PEOPLE OF HONG KONG IS UPPER MOST IN THEIR MIND AND THEIR MAJOR OBJECTIVE IS FOR HONG KONG TO CONTINUE OPERATING POST-1997 AS IT HAD BEEN UP UNTIL THAT POINT. I AM EQUALLY PERSUADED THAT THE BRITISH AUTHORITIES HAVE THE SAME COMMITMENT. NOW I CANT TELL YOU ANY MORE THAN THAT. I THINK YOU HAVE PICKED UP FROM WHAT I SAID, THAT AUSTRALIA HAS A JUSTIFIABLE INTEREST IN WHAT TAKES PLACE IN THIS MATTER. CERTAINLY WE DO NOT HAVE A RIGHT TO BE INTRUSIVE AND WE CERTAINLY DONT SEEK IN ANY WAY TO INVOLVE OUTSELVES IN THE PROCESSES WHICH ARE UNDERWAY MERELY TO INFORM OURSELVES. I MENTIONED TO YOU BEFORE A NUMBER OF TIMES, I AM
.../4
INWARD
INWARD