XN000022-1985-01-22 — Page 41

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is a reflection of the vital importance of the part these sectors play

in the economic life of Hong Kong, and will ensure that their interests

are appropriately represented. We shall test the success of these

steps. before moving to a further review in 1987.

36.

In that review we shall need to consider other important

issues such as the composition of the Executive Council, its relationship

with the legislature, and the role of the Govemor in each. In each

step we take we shall take fully into account the need for stability,

both political and economic. We shall keep in mind the fact that the

Chinese Government will be considering the future Basic Law for Hong

Kong, and the provisions of the Sino-British agreement, which provides

for an elected legislature by 1997 and an executive accountable to it.

There will be nothing in our plans inconsistent with those aims.

37.

Against this background, what will be the role of the United

Kingdom? As regards the administration of Hong Kong, the obligations

of the United Kingdom are clear, the British Government, through the

-

Hong Kong Govemment, will remain responsible for the administration of

Hong Kong until 1997. Both the Prime Minister and the Secretary, of

State have given unequivocal undertakings that Her Majesty's Goremment

will do its utmost to ensure that the agreement works, that Hong Kong

will continue to have a stable and responsive Government, and that the

territory will be administered in accordance with the interests and

wishes of its people.

38.

There will also be great opportunities for the UK business

community. Many UK companies, some of them household names, have been

operating successfully and profitably in Hong Kong for many years.

More than 50 are involved in manufacturing in Hong Kong, with a total

investment of around £88 million. But this investment pales in

comparison with that of the US, China and Japan. UK investment represents less than 7% of total overseas investment in Hong Kong

industry. In trading terus, the UK provides only some 4 percent of

our imports. This low level of UK involvement is difficult to explain.

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