CONFIDENTIAL
2.
interest in English as the leading technological
language. If we alone among Western countries
are laggard, our bilateral relations with China
will start to suffer, and we shall lose out
politically and commercially.
3. The Hong Kong aspect is also important.
We are nearing the point when, if confidence in
the colony is to be maintained, we shall need at
least a tacit understanding with the Chinese
Government on Hong Kong's future after the
expiration of the New Territories Lease in 1997.
The present Chinese attitude seems encouraging,
partly I suspect because they want stability in
Hong Kong as much as we do, as it is their major
route for foreign exchange earnings.
If we are
responsive to China's needs we ensure the most
favourable political and economic climate for
when decisions on Hong Kong are likely to be
needed.
4.
Over a wide field the deepening of Sino-
British relations should be beneficial rather
than otherwise. We shall be acting in concert
with, though inevitably in commercial
competition with, our West European partners and
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