11

interest in Hong Kong is to extract large sums

of money. Sir

Percy Cradock, who until his retirement in June 1992 was

Britain's most senior negotiator with the Chinese, claimed that

on more than one occasion the Chinese side had

had assured him

privately that if only he would let them know what the British

side wanted that would then be arranged and everything could then

run smoothly.5 Meanwhile Deng had instructed his negotiators,

"Watch those British lest they grab Hong Kong's capital." The

fact that the British conceded in 1983 rather than risk economic

collapse in Hong Kong doubtless reinforced his conviction that

British economic stake in the territory must be much greater than

they claimed or than was immediately apparent.

Every turn in the negotiations has been dogged by Chinese

suspicion of possible British schemes to secrete vast sums from

Hong Kong. The provisions of Annex III of the Joint Declaration

on Land Leases, including the establishment of the Land

Commission may be seen as illustrative of the Chinese concern

that the British may sell off Government real estate in the

territory so as to take away capital at the

at the expense of the

incoming administration of 1997. Similarly, the Chinese

questioning of the major new airport project may be seen

demonstrating their

their fears that Britain may offer

as

lucrative

"Deng's claim has been independently confirmed to me by more than one British official who was present on the occasion.

5Author's interview with Sir Percy at 10 Downing Street, 29 May, 1992.

"According to personal communication by a senior official in the New China News Agency, Hong Kong August 1992.

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