CALBASİERRA
Aspect
umpled that.- They do not
cukad to
change in Capitalul system
(SIC)!
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DSR 11C
most important factor for them is their consistent reliance
on Hong Kong for a major proportion of their foreign exchange
earnings (at present 30-40%); they also make extensive use
of its port facilities and financial and commercial instit-
1 utions. They could not at present administer the Territory
and retain these benefits, which depend on Hong Kong's
remaining outside the RMB area as well as Hong Kong's access
to foreign markets - let alone many other considerations,
including the law under which the territory is administered
Even during the Cultural Revolution, the Central Government
did not want a take-over. Improved relations with Britain
in the 1970s have led to a friendly practical relationship
with the Hong Kong Government coinciding with greatly
increased Chinese communist investment in the Territory
and closer economic links with Guangdong Province.
Ш
5. The post-Mao leadership have given generalised assurances
The wish to harm
inverlets that they do not intend to change the economic status quo for in Hong Kong and have o
a long time to come. In 1979, Deng Xiaoping 'formally
requested the Governor to ask investors to put their hearts
at ease. It was China's long term policy to regard Hong Kong
as a special case, no matter what political solution was
reached by 1997' (record of talks, 29 March 1979).
1
Later in
ns/
their discussion, Deng said there were two solutions by 1997
to take Hong Kong over, or to allow present realities to
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/remain.
Whatever
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