CONFIDENTIAL
PRINCESS MARGARET'S VISIT TO CHINA: 18-27 MAY 1987
BRIEF B (d)
UK-CHINA RELATIONS
1.
Contacts between China and Britain are increasing in
breadth, and gaining greater warmth and substance.
State Visit in October 1986 and the 1984 Joint
Declaration on Hong Kong have done much to stimulate
The
this, and continuing good relations will in turn aid a
smooth handover in 1997.
2.
Hong Kong remains a key element in Anglo-Chinese
relations. Both governments are committed to maintaining
the stability and prosperity of Hong Kong until the
handover in 1997. Superficially Hong Kong's confidence
in its future is strong. However, the economy is
vulnerable to Western protectionist moves, and prosperity
and optimism in Hong Kong are extremely susceptible to
internal and external developments. The development of
representative government in Hong Kong has been a source
of friction. The Chinese fear that a Westminster-style
system may develop, which in their view would lead to
party politics and instability. Close contact on Hong
Kong issues is maintained through the Joint Liaison Group
(set up in accordance with the Joint Declaration), which
FC6AAL
CONFIDENTIAL