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PRIVACY MARKING

In Confidence

DSR 11C (Revised 5/87)

economic and cultural. We are now looking for a suitable

site for our future Consulate General, which if it is to

make the sort of impact we want will require substantial

financial resources. We decided last year to upgrade the

post of Senior British Trade Commissioner in Hong Kong,

as a mark of the importance we attach to our growing

commercial relationship with Hong Kong. And we have

given our support to private initiatives to strengthen

Anglo-Hong Kong links, such as the recently formed

Anglo-Hong Kong Trust, in ways consistent with our own

objectives.

CONCLUSION

21.

to 1997.

There will inevitably be difficulties on the road

Administering a territory with an advancing

deadline will not be easy. Demonstrating that the UK is

carrying out to the full its obligations to Hong Kong

will require continuous and very substantial effort.

There is also a vast amount of detail to negotiate with

the Chinese and the process will require firm but

sensitive handling. And there are bound to be some

people who will accuse us of failing to do enough for the

territory. But Hong Kong still has a very great deal

going for it. We must now continue to press for what we

believe to be in Hong Kong's best interests and

demonstrate our own confidence in and commitment to the

territory. Provided we can do so, there is no reason why

Hong Kong should not enjoy a secure and prosperous

future.

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