CONFIDENTIAL
China/Hong Kong: International Support
Points to make
-
Prospects for Hong Kong look good. South China economic
development irreversible. Hong Kong's success hinges on its
economy. But we also need to create the right political
environment.
- As Douglas Hurd told Mr Watanabe in Washington on
22 January, we are grateful for Japan's efforts to influence
China.
-
Important to continue to remind China (as Mr Watanabe has
been doing) that a confrontational policy towards Hong Kong could discourage foreign investment. Particularly relevant to our current talks with China aimed at resolving the
airport financing problem.
Also useful that China is told frankly that the developing democratic system is essential to the maintenance of Hong Kong's stability and prosperity and that Chinese attacks on it undermine business confidence in the One Country Two Systems policy.
- For our part, we have no intention of shirking our
responsibility for Hong Kong's administration up to 1997 or
of tampering with its strong executive-led system of
government.
JH4ABC/1
SLM
CONFIDENTIAL