significance of 1997 and an assurance on a bankable basis, of continuity of an acceptable administration, law, control of the public service and defence forces, for an indefinite period which would, inter alia, allow immediate issue of longer land leases. Provided these things were assured,
confidence would not be much affected here by the concessions suggested in paragraphs 18 and 19, provided the Chinese made no attempt to encroach on the liberty of action of the administration. In this case the situation would be similar to that in Macau,
I
23.
It is easy to see all this in terms of a diplomatic exercise, but one must remember that the individuals principally concerned are the 5 million inhabitants of Hong Kong. An articulate minority are already deeply concerned and may be expected to make their views known with increasing clamour. believe this to be helpful. While we should not in any way encourage it or give grounds for being suspected of encouraging it, certainly we should let it take its course. Peking is likely to take some account of it. So too must we.
24.
In its general administration the contribution that the Hong Kong Government could make seems to me clear. It should stick to its present course with every appearance of normality. As far as possible it should maintain its programme of public works both to build up the economic infrastructure on which the prosperity of Hong Kong and its value to China depend, and also to maintain confidence. It should support the new industrial zones across the border and on no account lay itself open to a charge of failing to co-operate with them. Obviously it should avoid contention with the C.P.G. Meanwhile it should continue, through its programmes of reform and development to build up the contentment and cohesion of Hong Kong. There are still all too many defects to be made good. This is the right thing for a government to do in any case, and it may make some contribution to the main issue on which the future of the territory depends.
25.
It is with mixed feelings that I leave at this point when the curtain is beginning to rise, though I know
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