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assuring continuity and
(iv) Central issue: to devise package inspiring confidence. Given agreed common aim, confident this
possible.
(v) Meanwhile important nothing said or done to damage
confidence in Hong Kong or atmosphere of talks. Grateful
your understanding.
Special Autonomous Region) (vi) Chinese propaganda floats Hong Kong as SAR of China, with considerable autonomy and lifestyle basically
unchanged.
This
(vii) Most Hong Kong people sceptical of SAR idea.
Evidence suggests details rudimentary and basis for
confidence not grasped by Chinese. Investors need
effective guarantees against Chinese interference. at present provided by British administration.
(viii) We do not obtain revenue from Hong Kong nor have
we colonialist aspirations. We want best possible deal
for Hong Kong people.
Sovereight
(ix) Chinese and British positions well-known. We
fully realise importance of sovereignty to China.
not inflexible. Willing to consider any solution
acceptable to Britain, China and Hong Kong.
Confidine in Thongkong
(x
We are
Underlying state of Hong Kong's economy generally
healthy. Cumulative effect of Chinese propaganda
campaign is main reason for decline of Hong Kong dollar
and of stock market. There is tack of confidence in
China's SAR plan for Hong Kong. But Chinese propaganda
recently has eased. eff at present and Recent measures taken by Hong Kong Government have helped stabilise the dollar.
BACKGROUND (NOT FOR USE)
2. The Prime Minister is aware of the background to the
future of Hong Kong.
3.The Germans have some interest in this subject. The FRG
is Hong Kong's third largest market for domestic exports.
There is a strong German business community in Hong Kong,
and considerable German investment there.
2.
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14.