TNAG-0839-FCO40-1048-Relations-between-Hong-Kong-and-China-1979 — Page 68

Mr Quantrill

CONFIDENTIAL

Hong Kong and General Department

Reference.

HACK 220/

RRF 334/273

36

LG PA

- 2 JUL 197

SK OFFICA

RESEARCH MEMORANDUM: CHINA'S ATTITUDES TOWARDS HONG KONG

1.

You may care to see the first draft of Section III d) Hong Kong/China trade; investment in Hong Kong, for inclusion in the Memorandum.

2.

Two papers prepared in Hong Kong ("Hong Kong's Economic Links with China", Political Adviser's letter to you of 13 March and the brief prepared for the Governor's visit to China entitled "Commercial Relations") gave the clearest overview of the current situation. I have drawn on much of this useful data.

3. The draft attempts to put current economic trends into the perspective of a long historical relationship and draws on data from a number of sources. As a layman, I found the mass of trade tables difficult to interpret. The Economists (who should also see the draft) may well find flaws in some of the analysis.

P.) Welly.

P I Webb

Far Eastern Section Research Department

N Williamson

(cop for or file: I have

retired the top cops to in Webb, ashing if he could try to define more exactly the economic importance of Hong Kong to China).

82%

CONFIDENTIAL