G.F. 82
File No.
CONFIDENTIAL
3
Page
(£)
(g)
be
higher. development
probably
It was important to mesh between now and 1997 political with the arrangements spelt out in the Basic The Legislative Council elected in 1995 would go through to 1999 providing a welcome degree of continuity.
Law.
Mr Moore asked whether keeping the Hong Kong
after separate Chinese currencies
1997
and would cause problems. The Governor said that it would be an advantage. on the contrary China earned
its foreign exchange through Hong
Our trade with
in
was
about
a
third of Kong. denominated usually
Hong Kong
China dollars and indeed the Hong Kong dollar was widely used in Guangdong.
Senator Chapman
Hong Kong manufacturing businesses moving into
asked
about
significance of
Guangdong.
The
Governor
said that it was a
very welcome
phenomenon
rapidly
over
the
workers
in the
past province
which decade.
had developed
Two million
directly
or
indirectly
Hong Kong
were
for
now working
businesses, well over the size of our domestic workforce. About 50,000 Hong Kong managers worked in China. Hong Kong was increasingly
centre a service becoming management, financing and quality control.
(h) Senator
(i)
Maguire
asked whether
providing
China
the
would
station PRC troops in Hong Kong post 1997 and what else PRC would gain from the change in sovereignty. The Governor said that of prime
to China was
reunification, importance which resumption of sovereignty over Hong Kong
would China would bring
responsibility
its
closer.
for Hong Kong's
have external
affairs and defence. If it was sensible, it would move the minimum number of troops into Hong Kong. If China broke the terms of the JD its
They had gained would suffer. reputation international stature by signing it.
Mr Mackellar asked about Hong Kong's control over triads. The Governor said that triads in Hong Kong were a problem but there had been no serious revival of their
It was strength.
more abroad.
of
a
We
in
close
touch
problem among emigrant groups with the kept Australian police. It was potentially serious but fairly straightforward. Drug trafficking He said that there
was
was
a much bigger problem.
no sign of organized crime in Hong Kong's political process.
CONFIDENTIAL