14-JUL-1993 16:29

TRANSCRIPT B

0494536249 P.04

FOREIGN AFFAIRS SELECT

JAMES LEE

MR. ALASTAIR GOODLAD

14 JULY 1993

COMMITTEE

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relationship with China and when we have disagreements of course

they get a lot of coverage because they concern matters that are

very important to the future of Hong Kong and therefore very

important to us but the fact that we have detailed and robust

discussions about the future arrangements for the Legislative

Council in Hong Kong and the District Boards in the Municipal

Council does not mean that our bilateral relationship with China

is exclusively constituted by those discussions - very far from

it.

We have an increasingly important trading relationship with China,

the world's seventh largest economy, growing rapidly; we have a

good working relationship with them in the Security Council; they

are of course a very powerful influence for stability or the

reverse in the Asia Pacific region where we have very substantial

interests so it is an important relationship to us and these are

not the only aspects of it.

China is a nuclear power, it has a missile capability, it is a

country with massive environmental difficulties and aspects to it,

it is a country where human rights constitutes a substantial part

of our dialogue with them so it a country which is very important

to us obviously because of Hong Kong but a country where we have

contacts across a broad front and where we have what I believe is,

as it should be, a good relationship and it is very much in the

interests of Hong Kong that we should have a good relationship and

I am determined that we maintain that.

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