TNAG-0896-FCO40-1106-Refugees-from-Vietnam-in-Hong-Kong-Vietnamese-boat-people-1979 — Page 302

CONFIDENTIAL

SUMMARY RECORD OF A ROUND-TABLE DISCUSSION AT THE DEPARTMENT OF

FOREIGN AFFAIRS IN CANBERRA ON 1 AUGUST AT 11.15AM

Present:-

Sir Jack Cater

Chief Secretary, Hong Kong

Sir Donald Tebbit

Mr D R Tilling

HONG KONG AND THE FUTURE

Australian Officials

See attached list

1. Sir Jack Cater said Hong Kong enabled China to attract 36% (US$3billion) of her foreign earnings. The Chinese owned several main Chinese banks, with 137 branches in Hong Kong; a shipyard;

tool and die and real estate businesses, department stores etc, etc. When Sir Murray MacLe hose, during a recent visit to

China, had asked whether industrialists in Hong Kong could have

confidence in the future, Deng Xiaoping had answered them to put their hearts at ease

•

11

tell

Although the lease on the New Territories expired on 1 July 1997, the evidence was that the industrialists still had great confidence in Hong Kong. Although China's reserves at the end of 1978 totalled only US$8billion, the value of deals agreed or proposed was about US$800billion. The drive for improvement of the Chinese economy

seemed to come from the military.

2. Deng Xiaoping had said to Mr Malcolm MacDonald recently that it would take 35 years to achieve Hong Kong's 1979 standard and a further 80 years to develop and maintain equal standards. Sir Jack said that this clearly meant that Hong Kong was essential for this process. He believed that in 50 years, Hong Kong would still exist, although maybe not in the same form.

3. In response to a question about contact with China, Sir Jack said that the first Director of the NCNA in Hong Kong was fairly high in the Chinese hierarchy and the Political Advisor had daily contact with him and his subordinates. Chinese Ministers often

CONFIDENTIAL

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