ARZADB

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BULL POINTS AND DEFENSIVE MATERIAL

(i)

SINO/BRITISH/HONG KONG RELATIONS

Hong Kong at heart of our relationship with China.

Frequent contacts with Chinese, most recently my own visit to

Peking. Hong Kong again high on our agenda.

Increased contacts between Britain and China and between

Chinese and Hong Kong officials are healthy sign: cordial and

businesslike relations at all levels are a key to confidence and a

successful future.

HMG putting its own interests and its commercial relationship with

China before interests of Hong Kong?

Grotesque distortion. Nothing could be further from truth.

An illusion to suppose we could create good relations with

China at expense of interests of Hong Kong.

Cannot have one without the other: Hong Kong prospers when

London and Peking are in harmony.

Such criticism overlooks strength of our interests in

Hong Kong both political interest as administering government and stability of relations as trading partners.

Will HMG stand up to Chinese interference in Hong Kong?

Have never hesitated to take a stand for Hong Kong. History of negotiation and implementation of Joint Declaration has been tenacious pursuit of Hong Kong's interests.

But public confrontation would not be in Hong Kong's

interests.

other.

In any case not a question of one side "standing up" to the

Both sides recognise they can achieve best results by cooperation. Believe both sides are firmly committed to faithful implementation of Joint Declaration.

Overriding need is to lay foundation for future stability and prosperity: cannot be achieved by confrontation. China understands

that as well as we do.

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