CONFIDENTIAL
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THE PRC ALSO REGARD AS CHINESE TERRITORY REMOVED FROM THEIR JURISDICTION AS A RESULT OF FOREIGN INTERFERENCE.
12. NONETHELESS, THE CHINESE DERIVE CONSIDERABLE ECONOMIC BENEFIT FROM HONG KONG IN ITS PRESENT FORM., THEY OBTAIN MORE THAN 30 PER CENT OF THEIR FOREIGN EXCHANGE FROM HONG KONG AND DERIVE ADDITIONAL ADVANTAGES FROM INVESTMENTS BY HONG KONG BUSINESSMEN IN CHINA, FROM THE MANAGERIAL, FINANCIAL AND TECHNOLOGICAL EXPERTISE AVAILABLE IN THE TERRITORY, AND FROM THE PORT AND AIRPORT.
BRITISH POSITION
13. BRITAIN HAS BEEN RESPONSIBLE FOR THE PEOPLE OF HONG KONG - NOW TOTALLING 5.3M, OF WHICH 98 PER CENT ARE CHINESE - FOR SOME 140 YEARS. HONG KONG IS AN IMPORTANT COMMERCIAL AND FINANCIAL CENTRE FOR THE UK, AND THE WEST, IN THE FAR EAST. IT IS IMPORTANT AS A MARKET FOR BRITISH EXPORTS, PARTICULARLY CAPITAL GOODS, AND AS A COMMUNICATIONS AND AIR SERVICES CENTRE. WHILE THE VISIBLE TRADE BALANCE FAVOURS HONG KONG, THE OVERALL ECONOMIC BALANCE BETWEEN THE UK AND KONG KONG IS ABOUT EVEN. THERE ARE SIZEABLE FOREIGN INVESTMENTS AND INTERESTS IN HONG KONG, ESPECIALLY US, FRG, AUSTRALIAN AND JAPANESE. INTERESTS OF THE PEOPLE OF HONG KONG
14. ANY RESOLUTION OF THE WHOLE QUESTION OF HONG KONG'S FUTURE. MUST TAKE ACCOUNT OF THE VIEWS AND WELLBEING OF THE POPULATION THERE.
TIME FACTOR
15. UNTIL RECENTLY THE CHINESE GAVE THE IMPRESSION THAT THEY WERE IN NO HURRY TO DEAL WITH THE QUESTION OF HONG KONG'S FUTURE. THEY BELIEVED THAT GENERALLY REASSURING NOISES WERE SUFFICIENT TO MAINTAIN CONFIDENCE. HOWEVER, BY JANUARY 1982, WHEN MR HUMPHREY ATKINS (THEN LORD PRIVY SEAL) VISITED CHINA THEY APPEARED TO HAVE ACCEPTED THAT MORE POSITIVE ACTION WAS CALLED FOR IF BUSINESS CONFIDENCE, ON WHICH THE TERRITORY'S PROSPERITY AND STABILITY ARE BASED, WAS NOT TO BE ENDANGERED.
PYM
SENT BY TELEGRAPH TO:
ATHENS
THE HAGUE
BONN
LISBON
BRUSSELS
LUXEMBOURG
BRUSSELS (EEC)
PARIS
COPENHAGEN
STRASBOURG (UKDEL) TOKYO
AND SAVING TO CERTAIN OTHER POSTS
FCO/WHITEHALL
INFORMATION DEPT
ROME
NEW YORK(BIS) WASHINGTON
PEKING
- 4
CONFIDENTIAL
OTTAWA
CANBERRA WELLINGTON HONG KONG
BTC HONG KONG
(ALL IMMEDIATE]
ADDITIONAL DIST GUIDANCE