TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 225

Brief No 2

CONFIDENTIAL

-2-

and increasing, Chinese investments in Hong Kong, and the

territory is a valuable source of convertible currency (estimated

at about 30% of the total Chinese earnings from foreign trade),

mostly earned from foodstuffs, invisibles and remittances to

relations in China. It is also, as the only developed deep water

port on the Chinese coast, an important entrepot. The Chinese

interest in the continuing prosperity of Hong Kong has been

publicly confirmed in statements made by Chinese officials during

the visit by the Governor of Hong Kong to Peking last spring and

Premier Hua Guofeng's visit to Britain in the autumn.

Future of Hong Kong

4.

The present Chinese Government have never recognised the

19th century treaties establishing British administration in

Hong Kong. They regard Hong Kong as Chinese territory, temporarily

under British administration. Their publicly stated position is

that the question of the territory's future is something to be

settled through negotiation, when the time is ripe. In the

meantime, they have been at pains to assure investors that they need

have no fear for their investments no matter what decisions are

eventually reached about Hong Kong's political status.

5.

But these assurances only partly relieve the legal and

practical problems which arise from the fact that all land leases

in the New Territories are due to end in 1997.

Refurees from Vietnam and Immigration from China

6.

During 1979, over 70,000 Vietnamese boat refugees arrived

25,000 in Hong Kong. So far, only about 20,000 have been resettled,

and the Hong Kong Government remein seriously concerned at the

CONFT DUPIAL

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