TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 34

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2

4.

China's ideas on Taiwan are relevant to the 'Nine point

proposals' of September 1981. The fourth principal states:

5.

'Taiwan's current socio-economic system will remain

unchanged, so will its way of life and its economic

and cultural relations with foreign countries. There

will be no encroachment of the proprietary rights and

lawful right of inheritance over private property, houses,

land and enterprises, or on foreign investments.'

That this also applies to Hong Kong was confirmed on

13 February 1982 when Hu Yau Bang made a speech on policy over

Hong Kong and Macao. The Communist left wing orientated newspaper

Zheng Ming daily on 1 July and 1 August reported him as saying:

that to solve the problem of the reunification with

6.

(a)

(b)

Taiwan and of the recovery of sovereignty over

Hong Kong and Macao, the 'one state, two systems'

method would be adopted;

that that meant that they would be allowed to maintain

their capitalist social systems;

(c) that capitalism would be allowed to stay and develop

in Hong Kong.

In a speech in late June or early July 1982 Deng Hsiaoping

said inter alia:

/(a)

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