TNAG-1171-FCO40-1452-Future-of-Hong-Kong-1982 — Page 86

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F). CHINA HAD IN MIND THAT AFTER 1997 SOME FORM OF LOCAL COUNCIL,

PERHAPS WITH SIMILAR POWERS TO A COUNTY COUNCIL, WOULD BE FORMED TO DECIDE ON MATTERS RELATING TO HONG KONG. THE COUNCIL WOULD BE ELECTED PROPORTIONALLY TO REPRESENT THE DIFFERENT POPULATIONS PERMANENTLY RESIDENT IN HONG KONG.

G). THE FUTURE OF HONG KONG'S POSITION AS REGIONAL TRAVEL AND COMMUNICATION CENTRE WOULD HAVE TO BE ''STUDIED''. HONG KONG RESIDENTS WOULD BE ABLE TO TRAVEL OVERSEAS, BUT ON PRC PASSPORTS.

H). CHINA WOULD NEED TO CONSIDER THE ECONOMIC AND SOCIAL CONSEQUENCES OF A FLIGHT OF CAPITAL FROM HONG KONG, AND ALSO IN THIS CONTEXT THE INTRODUCTION OF CURRENCY AND TRADE RESTRICTIONS.

ENDS.

HADDON-CAVE

LIMITED

HK & GD

FED

MR DONALD

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