TNAG-1171-FCO40-1452-Future-of-Hong-Kong-1982 — Page 21

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2.

Chinese Attitude

Hong Kong as remnant of the period of

concessions and a part of Chinese

territory. UN Committee on Decolonisation

1972: Hong Kong and Macao part of Chinese

territory

sovereign right

settlement entirely within China's

not under the ordinary

colonid ternities. Maintenance of principle

category of **

te that all treaties

unequal. Not necessarily fully rejected.

But regard all Hong Kong (including New

Territories) as Chinese territory. (Macao too).

This political primiple is very strong.

Rik internal political criticism. Taiwan paralled

to

But economic advantage of status quo in Hong

Kong also compelling.

40% foreign exchange

Investment

Use of facilities

-

pigs, water etc

| Establishment JBEZ's.M

Establotment

Training and import of technology

Prefer

In these circs Peking would, not face up

to HK problem. But worries about 1997 have

created

own

-momentum.n the

Territory