TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 84

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

BRITAIN HAS NO GREAT INTEREST IN HK

(Ming Pao

22.2.81)

A novel

iden

As the year of 1997 is getting near, the UK would like China to give a clear indication of HK's future. I have met many officials, MPs and people in the political circle in Britain. Their attitude is basically

the same: the British government must work in accordance with treaties

and rules. And the Prime Minister, the cabinet and even the Parliament

would have no authority to change this, unless the constitution is first

amended. China can do things flexibly and can vary decisions according

to international and internal situations. But Britain has no such

convenience when she deals with matters governed by set rules. People

understand that under existing circumstances, China has no intention to

resume HK in 1997. But if both sides fail to make a formal arrangement

beforehand to change the existing provision, Britain will have to follow

the treaties and law according to her traditional practice.

Are Britons so rigid and so prepared to give away the tremendous

benefit? Perhaps this is not the case. The problem is: Britain is

in fact not getting any enormous benefit from keeping HK. People

generally have a misconception that as HK is having a huge surplus every year, all the money is remitted to London. This is absolutely impossible.

The accounts of the two government are not related in any way, and they

have to be responsible for their own surplus or deficit. Strictly speaking,

as far as government finance is concerned, Britain is suffering losses in

keeping HK. There is a department and officials in Britain dealing with HK affairs, but she cannot ask HK to pay for them. Regarding the British garrison here, HK is only responsible for a small portion of the cost. And the cost of purchasing guns, tanks, planes and warships are paid by

British taxpayers, not HK people.

As to trade between the two places, the balance of trade is greatly

in HK's favour every year. If this is interpreted by out-moded and simple

economic theory, ie all favourable trade balances are 'exploitations' (this view certainly is not correst), Britain could be taken as a colony

of HK, and HK is exploiting Britain every year.

!

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