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would continue. Moreover, China had said that there would be no change in the social system for 50 years after 1997. It was worth asking if similar terms (he said he would not use the word "generous") had been offered in resolving similar disputes elsewhere in international history? The Secretary of State said this was a good question. Chairman Deng continued by recalling Dr Brežinski's recent visit to China. Chairman Deng had spoken to him of the "one country, two systems" concept for settling disputes. This seemed to be the only right way.
should be found.
There were two Chinas, Koreas and Germanies. Force was the only alternative. The "one country, two systems" concept might not be applicable to some disputes. Other reasonable ways
he cited as examples the Sino/Japanese dispute over the Senkaku Islands and the issue of the Spratly Islands. He had told the press in Japan that the Senkaku question would be better left for later generations who might be wiser. He had then been thinking that instead of discussing to whom the place belonged it would be better for the two sides to explore ways of jointly developing the place. Such questions were very complex. A settlement acceptable to all concerned should be sought. The problem could be solved either by the "one country, two systems" concept or by joint development and exploration. Present international disputes could erupt. Removing such disputes would reduce the chance of disturbance. These ideas had not been tried before. Some people might say they were impractical. But China wanted to try the concept first in Hong Kong and then in Taiwan. He was personally convinced that it would work.
5. As for Hong Kong, the question of sovereignty had been solved. The CPG would not collect a penny from Hong Kong. There would be international cooperation in Hong Kong. This would not be carried out only in China and Britain. There would also be international cooperation between the United States, Japan, and other countries. It was the duty of all concerned to maintain Hong Kong's stability and prosperity. Noone wished to see a mess in Hong Kong. Apart from the central question of sovereignty, China wanted nothing from Hong Kong. At present China earned about US$5000 million in foreign exchange from Hong Kong. Any disturbances in Hong Kong would adversely affect these foreign exchange earnings by US$1,000 to US$2,000 million. But that would not effect China's modernisation programme much. Such disturbances could happen, but China was not afraid. The two sides should continue to cooperate to avoid such developments.
6.
The Chinese side were, frankly, very concerned about the transitional period. They were not concerned about the SAR after 1997 as long as good arrangements were made for the transitional period. There were many competent people in Hong Kong. He did not include people like Mr S Y Chung amongst them. He had been said to have been hard on S Y Chung and the two other ExCo unofficials. However, people were unaware of S Y Chung's attitude: he had spoken of "You Chinese..." and had
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