CONFIDENTIAL
BRITISH TALKS APPEARED TO TESTIFY THIS. THE NEXT 63 YEARS
WOULD PROVE THE CONCEPT. SOME PEOPLE HARBOURED DOUBTS ABOUT
WHETHER CHINA WOULD HONOUR THE AGREEMENT.-DENG SAID THAT HE
WISHED TO INFORM THE PRIME MINISTER AND THE WHOLE WORLD
THAT CHINA HAD ALWAYS HONOURED ITS COMMITMENTS.
J. SOME JAPANESE FRIENDS HAD ASKED WHY CHINA HAD SET A
PERIOD OF 50 YEARS AFTER 1997 FOR THE DURATION OF THE
AGREEMENT. THE REASON WAS THAT CHINA HOPED TO APPROACH THE
ECONOMIC LEVEL OF ADVANCED COUNTRIES BY THE END OF THAT TIME.
IF CHINA WANTED TO DEVELOP ITSELF, IT HAD TO OPEN TO THE
OUTSIDE WORLD FOR THE WHOLE OF THAT PERIOD. THE MAINTENANCE OF
HONG KONG'S STABILITY AND PROPERITY ACCORDED WITH CHINA'S
INTEREST IN MODERNISING ITS ECONOMY. SO THE PERIOD FOR THE
AGREEMENT HAD BEEN SET IN THE LIGHT OF THE NEEDS OF THE
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 COME TO DEPEND UPON EACH OTHER.
5. THE PRIME MINISTER SAID THAT 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 WOED 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 CHAIRAMN 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.
7. DENG SAID THAT THE 1 BILLION CHINESE ON THE MAINLAND WOULD PURSUE SOCIALISM FIRMLY. IF THE PEOPLE OF TAIWAN WHO NUMBER SOMEWHAT OVER 10 MILLION AND THE 5 MILLION PEOPLE OF HONG KONG PRACTICED CAPITALISM THIS WOULD NOT AFFECT THE SOCIALIST ORIENTATION OF THE BULKK OF THE
COUNTRY. TIDEED THE PRACTICE OF CAPITALISM IN SOME SMALL AREAS WOULD BENIFIT SOCIALIST POLICY. THE POLICY OF OPENING
TO THE OUTSIDE WORLD WOULD HELP CHINA'S SOCIALIST POLICY TO GROW
IN STRENGTH.
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/THE