XN000022-1996-01-09 — Page 5

3.

Mr Rifkind: There is one massive bargaining chip and that is that the Chinese Government, like Hong Kong and like the British Government, want to see a prosperous and successful Hong Kong continuing after 30th June next year. And therefore the fundamental questions are: what is required to ensure that; what is the best way of ensuring the maintenance of confidence, the retention of Hong Kong's reputation as a successful territory? And that is a matter on which we can indicate to the Chinese Government in a very clear and unequivocal way our judgment as to what is required. And our judgment is very much influenced by what we hear in Hong Kong. One of my reasons for being here is to listen and to learn. And there have been quite a number of views expressed over the last couple of days which I believe are very pertinent and very appropriate. And if the Chinese Government wish, as I believe they do, to see Hong Kong a success, then they have to be sensitive to the views, the aspirations and the concerns of the people of Hong Kong. If they are insensitive then they would be shooting themselves in the foot and I can't believe that they will wish to do that.

Question: But you are limited. There is no chance of sending gun-boats, for example.

Mr Rifkind: That is not part of our strategy. You're correct.

Question: What influence can you have? What can you do? As Mr Lee asked yesterday.

Mr Rifkind: I think what we have to do is be absolutely frank and honest, not only with the people of Hong Kong but also with our Chinese colleagues. We have to give them the benefit of our honest judgment as to what is required from their side to ensure confidence in Hong Kong. There are certain matters for which we are responsible, where we will take decisions, and there we have to do our best to reach the right decisions. There are other matters which will be decided by China. That is a fact. What we can do is seek to influence those decisions that they themselves will take.

Over the next couple of days I shall be seeing senior Chinese leaders. I will have an opportunity in private conversations as well as any public remarks to indicate my impressions from what I have been told, from what I have learnt, from what I understand to be the situation here in Hong Kong. Given that the Chinese want Hong Kong to be a success it is overwhelmingly in their own interests that Hong Kong should be a success - then I believe that they will be listening very carefully to what I and others will have to say. And it is right and proper that that should be so.

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