CONFIDENTIAL
out of the JD arrangement.
Economic developments are also
important. The transformation of Guangdong province in recent years and the increasing interdependence of economic
growth in Hong Kong and Guangdong are encouraging. The
Secretary of State has pointed out that despite frequent differences of perception there is no basic conflict of interests between Hong Kong and China.
Q15 Is the BL consistent with the JD? Is the CFA
agreement?
A15 There are certain points in the BL which we would have
liked to have seen drafted differently, but on the whole we
are satisfied that we have achieved consistency between the BL and the provisions of the JD. In our view the agreement
reached with the Chinese on establishing the Court of Final Appeal is not inconsistent with the provisions of the JD.
Q16 If the situation deteriorates between now and 1997 will HMG make more generous arrangements for HMOCS officers?
A16
Or if the situation improves will we make less generous. arrangements? We cannot speculate on this kind of a hypothesis. But I think you would be prudent to assume that our scheme has been designed to be reasonably robust against
the passing ups and downs of the political scene and that we do not at present envisage having to modify it.
REGABY/6
CONFIDENTTAL.