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Vice-Minister Zhang replied that at present China/Hong Kong contacts were very good. Vice-Chairman Deng Xiaoping had spoken of the Ilong Kong question to Lord Carrington, and Premier Zhao
Vice-Minister Ziyang had also spoken to the Lord Privy Seal. Zhang did not feel he could go any further than to repeat what At the moment China has no details for they had already said. solving the question of Hong Kong. What China could do was to talk about principles. There were two principles:
(a) China would uphold its sovereignty over Hong Kong.
This had been its constant stance and had been explained in many international conferences.
(b) China would maintain the prosperity of Hong Kong.
This meant that Hong Kong would remain a free port and a world centre for finance and trade.
As for the concrete details of how the Hong Kong problem should be solved, China would listen to the opinions of pepple in Hong Kong. China itself would have to make a further study. But, said Vice-Minister Zhang, we still have time. The Vice-Minister concluded by saying that he was merely repeating what Deng and Zhao had said.
12. Lord Rhodes replied that he believed there were many difficulties ahead and that the transition in Hong Kong needed to be
Lord Rhodes made calmly and smoothly. Vice-Minister Zhang agreed. wondered what would be the effect on people in the communes with a relatively low standard of living when they saw the disparity of
Vice-Minister wealth between themselves and the people of Hong Kong. Zhang said that he had not gone into detail on this question and that he thought there were many different ways of calculating incomes and wealth. China recognised that she was backward and must make greater efforts to raise living standards.
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