Sept

12

The airport issue was seemingly resolved in July 1991 when

Prime Minister John Major went to Beijing to sign the Memorandum

of Understanding as agreed during the secret visit of Sir Percy

Cradock a month earlier. The Chinese Premier had used the issue

to bring over his British equivalent as the first West European

leader to visit Beijing since Tiananmen. The British Prime

Minister, reportedly was unhappy at being so used and was

dissatisfied with way human rights issues affecting China had

been addressed. This apparently, was the origins of the decision

to change the character of the governor and appoint a leading

politician who would be more attuned to the political interests

of the Prime Minister and who would assume greater responsibility

in leading the negotiations with the Chinese.

The Chinese Interests in Hong Kong

With less than five years to go before the transfer of

sovereignty to China the stakes for each side are enormous.

we have seen, Britain has something to gain if things were to go

well and much to lose if they were

to lose if they were to go badly. But from a

Chinese perspective the importance of Hong Kong has continued to

grow until it has reached the point of being a major factor in

determining the success or failure of many of the policies

associated with Deng Xiaoping. A dramatic collapse of Hong Kong

would undermine the prospects for peaceful re-unification with

Taiwan; it would do untold damage to the efforts of modern

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