CURRENT CHINESE ATTITUDES
CONFIDENTIAL
The
7. Despite all the difficulties arising from Tiananmen, China's basic attitude to Hong Kong has not changed. Chinese have publicly reaffirmed their commitment to the Joint Declaration. In April 1990 (after 3 years' consultation with selected Hong Kong people) they promulgated the Basic Law for the Hong Kong Special Administrative Region, which will provide the legal framework for its future status. Although the Basic Law contains some unwelcome features (eg an anti subversion clause) it is on the whole a satisfactory reflection of the provisions of the Joint Declaration. There is no evidence that the Chinese want to renege on the Joint Declaration. On the contrary, national interest (the economic advantages derived from Hong Kong, and the precedent it could provide for reunification with Taiwan) points overwhelmingly to the maintenance of China's Joint Declaration obligations.
8.
Chinese public opposition to the Nationality Bill has now subsided, but we still have to contend with their doubts about the reliability and loyalty of many Hong Kong people, particularly those in the civil service. They are also wary of what they suspect is a British plot to siphon resources away from Hong Kong before 1997. Although they have reacted with restraint to the decision of the Hong Kong Bank to restructure (thanks to careful prior consultation) that move will have reinforced their suspicions. In recent months it has become increasingly apparent that their attitude to Hong Kong is strongly coloured by worries about how the transition will be managed and the financial viability of the post-1997 Government.
LEGAER/4
CONFIDENTIAL
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