TNAG-1038-FCO40-1288-Future-of-Hong-Kong-1981 — Page 70

SERET.

Neither the Vice Chairman nor he thought that

But because the date of 1997

these worries were realistic.

reflected backwards on leases and mortgages in Hong

Kong, those who were considering investment there

were beginning to wonder whether the legal position

would not cause them difficulties in the future. He did

not want to exaggerate; but it was in the interests

of both Britain and China that the stability and

prosperity of Hong Kong should continue, He wandered

therefore whether it might be possible for the two

sides to discuss the problem. The British side might t

in due course make suggestions to overcome the

problem, having due regard to China's overriding interest

in the matter.

Vice-Chairman Deng said that at present

China was not in a position to make much comment on

the matter. But he could state solemnly that the

assurances he had given represented the formal and

dependable position of the Chinese Government When

Britain considered the question it should study

China's policies towards Taiwan.

a solution for the Taiwan issue.

China had proposed as

(a)

(1)

that way of life and political set-up would

not be changed;

(ii)

that incomes in Taiwan would not be reduced;

Ch...

(iii)

that Paiwan could even consider the

there self-

maintenance of

of defence forces.

However it would be necessary for Taiwan to abandon

the name by which it called itself as well as ite

/ILAB