TNAG-1053-FCO40-1303-China-and-Hong-Kong-Working-Group-1981 — Page 52

CONFIDENTIAL

File

4

Foreign and Commonwealth Office London SW1A 2AH

G C Dick Esq

CRE 4

HKCK 12114

RECEIVED IN REGISTRY NO. 51

Department of Trade 1 Victoria Street 22 JAN1981 LONDON SW1H QET DESK OFFICER

INDEX

PA

Telephone 01- 233 3184

REGISTRY Action Taken

No MSIZI AN 13

Dem Gain

CHINA AND HONG KONG WORKING GROUP

1.

52

Your reference

Our reference HKK 121/4

Date

19 January 1981

Во

28 Jan ton

IMAS

NICK 121la

1980

nolet

for 23/1

23-1 23.

In your letter of 19 December 1980 to Robin McLaren, you asked that I circulate a note on Hong Kong: The Future of Hong Kong and the relevance of 1997: implications for UK trade and investment'. Chris Priston also raised the subject in his letter of 1 December 1980.

2. We have been considering how to tackle this delicate subject. I agree that we need a line for use in response to enquiries from the business community. I do not however think that it would be helpful to circulate a paper covering the whole question of the future of Hong Kong and the relevance of 1997. This brings in a range of issues on which ideas are still evolving and I think that a written exposé would be incomplete and would give a false impression on many points.

3. What I suggest therefore is that at your meeting I lead off, covering the following points:

a) the present state of business confidence (domestic and

international) in Hong Kong;

b) indications of concern about 1997 in the business community;

c) the attitude of the Chinese Government;

d) the economic prospects and HMG's interests.

4. I would also suggest a line for use with enquirers in the following terms:

"Confidence remains high in Hong Kong. The Chinese Government have a considerable economic stake in the Territory and have clearly indicated their interest in helping to maintain stability there. Deng Xiaoping and other Chinese leaders have gone out of their way to reassure

This investors that they need not worry about the future. combined with the excellent relations between Britain and Hong Kong on the one hand and China on the other provides a good environment for British investors and businessmen

CONFIDENTIAL

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