XN000022-1980-01-11 — Page 5

FRIDAY, JANUARY 11, 1980

SIR JACK: I AM NOT QUITE SURE OF WHAT YOU MEAN BY AN OPEN

BORDER BUT WE DO HAVE OF COURSE INCREASINGLY... MOVEMENT, FRIENDLY MOVEMENT, ACROSS THE BORDER, SO IT'S ALREADY THERE IF YOU LIKE TO THAT EXTENT. THE SETTING UP OF THE INDUSTRIAL PARK AS IT IS CALLED IN SHUMCHUN, HAS MEANT THAT QUITE A NUMBER OF HONG KONG INDUSTRIALISTS, AND WE HAVE A NUMBER OF PEOPLE GOING UP THERE FOR WEEKEND TRIPS TOO, AS YOU KNOW. SO IF YOU LIKE, BARRIERS ARE BREAK ING DOWN, IT IS A GOOD THING, IT MUST BE.

INTERVIEWER: WE ARE MOVING OF COURSE TOWARDS 1997 AND THE

LEASE. THE EXPIRATION OF THE LEASE ON THE NEW TERRITORIES. CAN WE GET SOME SORT OF POLICY STATEMENT ON THIS FROM YOU, CAN WE GET SOME SORT OF COMMENT THAT, IF YOU LIKE, WILL PUT INVESTORS' MINDS AT EASE IN HONG KONG?

SIR JACK: YOU HAVE USED THE RIGHT TERM BECAUSE THIS IS

PRECISELY WHAT HUA GUOFENG SAID TO MRS. THATCHER IN LONDON AND DENG XIAOPING TO THE GOVERNOR, SIR MURRAY MACLEHOSE IN PEKING DURING THE SPRING OF LAST YEAR. IT IS CLEARLY A MATTER WHICH THE CHINESE HAVE THOUGHT ABOUT OTHERWISE THEY WOULD NOT HAVE SAID WHAT THEY DID AND THAT IS WHAT YOU HAVE JUST SAID AND THAT IS THAT INVESTORS IN HONG KONG SHOULD PUT THEIR HEARTS AT EASE. AND I THINK THAT THIS IS IMPORTANT. CLEARLY THE CHINESE THEMSELVES THINK THIS IS AN IMPORTANT MESSAGE AND ONE MUST ACCEPT IT AS SUCH. THERE IS NO DOUBT TOO IN MY MIND THE FACT OF THEIR INVOLVEMENT IN HONG KONG, THEIR INCREASING INVOLVEMENT IN HONG KONG, MUST BE ALL TO THE GOOD. 1997 IS A DATE WHICH OF COURSE IS STILL SOMEWAY AWAY AND THIS WAS PRECISELY THE COMMENT WHICH WAS MADE BY THE CHINESE FOREIGN MINISTER IN LONDON. IT IS A DATE WHICH IS VERY MUCH IN THE MINDS OF EXPATRIATES, I KNOW, LESS IN THE MIND VERY OBVIOUSLY OF THE CHINESE THEMSELVES. SO AS THINGS ARE GOING THERE WILL BE NO DOUBT IN MY MIND THAT HONG KONG'S FUTURE MUST BE GOOD. IT IS DEVELOPING AND I THINK THE MERE FACT OF CONTINUED INVESTMENT IN HONG KONG IS A SIGN THAT OTHERS WOULD AGREE WITH ME HERE.

INTERVIEWER IS THIS THE TYPE OF SUBJECT THAT THIS GOVERNMENT

WILL PURSUE DURING THE NEXT DECADE WITH THE CHINESE AUTHORITIES TO HAVE PERHAPS SOMETHING MORE FIRM WHICH LAWYERS AND BUSINESSMEN OBVIOUSLY ARE LOOKING FOR?

SIR JACK: THIS IS THE SORT OF THING WHICH IS ENTIRELY POSSIBLE

OVER THIS NEXT DECADE. YOU ARE ABSOLUTELY RIGHT AND I THINK IT IS THE SORT OF PROBLEM WHICH LAWYERS AND ACCOUNTANTS WORRY ABOUT.

INTERVIEWER: SIR JACK, RELATIONS WITH BRITAIN, HONG KONG IS

ONE OF THE LAST REMAINING COLONIAL TERRITORIES OF ANY SIGNIFICANCE. DO YOU SEE PRESSURE INCREASING IN THE UK FOR BRITAIN TO RELINQUISH HONG KONG VOLUNTAR ILY?

/SIR JACK: