TNAG-1171-FCO40-1452-Future-of-Hong-Kong-1982 — Page 95

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

the border had become compatible with that in Hong Kong itself, the 2 cogs could begin to mesh. This way the strength of the Hong Kong dollar could be maintained, which he thought crucial. The Chinese realised this as much as we did. If Hong Kong were to fail,

the Chinese would suffer more than we did. It was therefore important to maximise economic cooperation and industrial collabora- tion across the border; for his part he would supply China with as much electricity as he possibly could. The obverse of the coin was that if Hong Kong did not help the success of the New Economic Zones the Chinese would see this as a deliberate act of not pulling our weight, and wishing to undercut their economic plans.

6.

Lord Rhodes and Lord Kadoorie (combined ages 172) then expounded at some length the proposition that old age per se is a valuable attribute in negotiating with the Chinese.

20 May 1982

Mrt them

MA Arthur PS/Lord Belstead

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