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been set in the light of the needs of Chinese modernisation. In the first 50 years of the next century there was also a need for a stable Taiwan. China did not wish to go to war with Taiwan. If people understood the considerations behind China's policy they would not have misgivings that it would change. The possibility of change after the first 50 years of the next century was even less because by then economic exchanges with other countries would have resulted in China and other countries having come to depend upon each other.
5.
The Prime Minister said that Chairman Deng's concept was a great design which she believed could be achieved. He had said that China deduced truth from facts. He must therefore know that the concept would work because capitalist Hong Kong worked very well now and it was not going to be changed after 1997. Our two countries had signed the agreement in the eyes of the world. She was sure that China would therefore honour the agreement. So would Britain. Nevertheless it was natural that in the face of change some people in Hong Kong harboured doubts. They needed to be reassured and it was helpful to be able to explain the reasons why Chinese policy would not change, as Chairman Deng had explained it. Up to 1997 Britain would administer Hong Kong prudently and with foresight and would pay particular importance to the work of the Joint Liaison Group so that the transition would be smooth.
6. Chairman Deng said that the one billion Chinese on the mainland would pursue socialism firmly. If the people of Taiwan who numbered somewhat over 10 million and the 5 million
people of Hong Kong practiced capitalism this would not affect the socialist orientation of the bulk of the country. Indeed the practice of capitalism in some small
areas would benefit socialist policy. The policy of opening to the outside world would help China's socialist policy to grow in strength.
7. The Prime Minister said that she believed that the agreement would be honoured, that the concept of "one country, two systems" would work and that the 50 year economic plan for China would also work, since all would be of benefit to China.
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