TNAG-0438-FCO40-503-Visits-of-UK-Members-of-Parliament--to-Hong-Kong-including-v-1974 — Page 75

IN CONFIDENCE

in 1997. This is however looking a very long way ahead and it is simply

not possible for anyone to predict what the circumstances in Hong Kong

will be at such a distance in the future. The Chinese position is that

Hong Kong is a part of China which will revert to China when the time is

ripe. They consider that the Treaties were imposed by an imperialist

power on a weak and divided China in the nineteenth century, and are

not therefore binding on them. They have however recently given

assurances that they do not regard this as an immediate issue. We have

every confidence in the continuing development of Hong Kong for the

foreseeable future.

3.

CHINESE OFFICIAL REPRESENTATION IN HONG KONG

In February 1956 the Chinese Government proposed that a

representative of the Ministry of Foreign Affairs should be established

in Hong Kong. In February 1958 the then Secretary of State for Foreign Affairs told the Chinese Chargé d'Affaires that we could not agree to the proposal. The Chinese Government have since revived their proposal but have been given no encouragement.

4.

HONG KONG TRADE: RELATIONS WITH UK

In

and

Hong Kong's external trade reached new record levels in 1973.

money terms, total imports increased by 33% to HK$29,005 million (approx. HK$12 £1);

domestic exports by 28% to HK 19,474 million;

re-exports by 57% to HK$6,525 million. The colony thus has a substantial trade deficit (HK33,006 million in 1973), which is offset by invisible

receipts from tourism, shipping, insurance and banking, and by the inflow

of foreign capital.

Hong Kong's most important trading partners are the USA, Japan, China

and the UK. The UK is the fourth largest source of Hong Kong's imports (supplying 5.9% of the total in 1973), and the second most important customer for Hong Kong's domestic exports (accounting for 14.5% of the

1973 total).

IN CONFIDENCE

2.

Page 75Page 76