TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 17

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say that, since the Chinese Government had expressed its political

view, all would be well for investment. The future of Hong Kong was

guaranteed, but he could not confirm that the political situation

would remain unchanged since that would affect the Chinese position.

The Governor said that what he proposed did not affect the Chinese

position. Deng Xiaoping said good. The Governor said he had many

potential investors who were concerned not about the CPG's attitude

but about the date of the lease. He wanted no date. Deng Xiaoping

declared that the Chinese position would not affect the interests

To put it more clearly, in this century and in the

beginning of the next century Hong Kong would be continuing with

a capitalist system, while China was continuing with a socialist

system. By 1997 China might take over Hong Kong. But this would

not affect her economy. They had not taken over Macao so far.

There were two solutions by 1997, to take Hong Kong over, or to

allow present realities to remain.

of investors.

Whatever political solution

was adopted, investors would not be affected. '

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