TNAG-0944-FCO40-1163-Future-of-Hong-Kong-1980 — Page 98

-6.

ܐT

NOW.

ON THE OTHER, THEY ARE ALSO NOT ABLE TO PREDICT THE INTER-

NATIONAL SITUATION AND ATTITUDINAL CHANGES ON THE PART OF THE

A PREMATURE STATEMENT OF ITS POSITION WOULD

BRITISH GOVERNMENT.

ACTUALLY HURT CHINA'S POSITION IN FUTURE NEGOTIATIONS.

((TEXT)) THE SECOND POSSIBLE REASON. COULD BE THAT THE MOST

IMPORTANT THING FOR CHINA AT PRESENT IS NOT WHETHER HONG KONG

CAN BE FORMALLY RETURNED. EVERYONE KNOWS THAT FOR HONG KONG

TO REMAIN PROSPEROUS AND FOR IT TO BE USEFUL TO CHINA, IT MUST

MAINTAIN THE PRESENT ECONOMIC STRUCTURE. AFTER THE DOWNFALL OF THE

GANG OF FOUR, THE CCP HAS GREATLY CHANGED ITS PREVIOUS POLICY OF

ARMCHAIR POLITICS IN HONG KONG AND CONCENTRATED ITS EFFORTS ON

ECONOMIC WORK. THE VITALITY OF THE PRC REPRESENTATIVE ORGANS

IN HONG KONG AND SOME CHINESE CAPITAL WITH CLOSE RELATIONSHIP TO

CHINA OVER THE PAST FEW YEARS IS A MANIFESTATION OF THIS CHANGE.

IF WE LOOK AT THE WHOLE OF HONG KONG AS A COMPANY WHICH IS RAKING

IN HUGE PROFITS, THE PRESENT CHINESE POLICY TOWARD HONG KONG IS TO

GRADUALLY INCREASE ITS SHARE IN THIS COMPANY TO GET A GREATER

PORTION OF THE PROFITS.

THE KEY QUESTION IS NOT WHETHER CHINA CAN

GAIN MANAGEMENT RIGHTS IN HONG KONG. IT IS WHICH TYPE OF MANCEMENT

WILL BE BEST FOR THIS "COMPANY" TO MAKE PROFITS AND THUS, BEST FOR CHINA

TO GAIN MORE DIVIDENDS. CHINA HAS ACT IVELY PARTICIPAED IN THE HONG

KONG ECONOMY FOR ONLY A FEW YEARS. HOW CAN IT TELL WHOSE MANAGEMENT

OVER HONG KONG WILL BE MOST BENEFICIAL FOR ITS CONTINUED USE OF HONG

KONG?

***

SO WHEN WE SAY THAT CHINA AND-BRITAIN HAVE DIFFERENT STANDPOINTS,

IT DOES NOT SIMPLY MEAN THAT ONE PARTY ATTACHES MUCH IMPORTANCE TO

THE LEASE AGREEMENT WHILE THE OTHER DOES NOT. WE MEAN THEY DIFFER

OVER HOW THE PROFITS FROM THIS "COMPANY" SHOULD BE DISTRIBUTED THE

EF IT ISH WOULD NATURALLY WANT TO MAINTAIN THE TRADITIONAL MONOPOLY OF

POWER IN HONG KONG. THEY ARE EVIDENTLY DISGRUNTLED BY THE GROWING

INVEST MENTS FROM CHINA AND LOCAL CHINESE CAPITAL WHICH COULD LATER

OVERTAKE THEM. IN SIMPLE TERMS, CHINA AND ERITA IN ARE LIKE SHAREHOLDERS ***

RALLY