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CONFIDENTIAL

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LORD GLENARTHUR'S VISIT TO THE SOUTH PACIFIC, 9-23 OCTOBER

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BRIEF NO 4. CHINA/HONG KONG

OBJECTIVES

1.

Kong.

2.

To draw attention to the continuing economic success of Hong

To reassure Australians and PNG of firm commitment of Chinese and British Governments to implementation of Joint Declaration.

3.

To seek continued international support for Hong Kong.

POINTS TO MAKE

1.

Tremendously impressed by all I saw on my recent visit to Hong

Kong. A thriving city.

2.

We and Chinese committed to maintain stability and prosperity of Hong Kong so that it may continue to thrive. Implementation of Joint Declaration going well. Discussions on JLG taking place in good atmosphere, continuing to achieve positive results.

3.

Confidence a vital factor. Economic confidence very high. But understandably Hong Kong people apprehensive about changes that face them in 1997. International community can help greatly by showing continued support for Hong Kong and continued confidence in Hong Kong as a good place to do business. In everyone's interests that Hong Kong should continue to flourish, but particularly so for Asia-Pacific region.

CONFIDENTIAL

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