The Chinese side have been seeking to intimidate Hong Kong and foreign firms, by suggesting that those who support the Governor's proposals may expect to suffer commercially after 1997. This is dangerous and irresponsible behaviour, and does not sit comfortably with China's commitment under the Joint Declaration to preserve Hong Kong's stability and prosperity.
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It is clearly important that China and Britain should return to calm discussion as quickly as possible: our part are ready for this at any time. It would be very helpful if the Japanese side could take any opportunities to explain privately that Chinese attacks on business confidence in Hong Kong run the serious, long-term risk of undermining international confidence in the one country two systems policy and China's standing in the world. In particular, it would be helpful to make the following points:
a)
b)
c)
gradual political as well as economic evolution in Hong Kong is necessary if
prosperity and stability are to be preserved
prosperous well educated people
understandably want a greater share in running their own affairs
as a major economic partner of Hong Kong, Japan considers that Hong Kong works so well not only because of its capitalist economic model, but because of Hong Kong's way of life as laid down in the Joint Declaration. Preserving this way of life is a key part of maintaining Hong Kong's success.
Foreign and Commonwealth Office London
18 December 1992