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.
It is clearly important that China and Britain should return
to calm discussion as quickly as possible: we for 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) gradual political as well as economic evolution in Hong Kong is necessary if prosperity and stability are to be preserved
b) prosperous well educated people understandably wanted a greated share in running their own affairs
c) 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.
FCO 18 December, 1992