TNAG-1231-FCO40-1544-Visit-by-Richard-Luce--Minister-of-State-for-Foreign-and-Com-1983 — Page 126

2

4.

Indeed, the fears in the hearts of many Hong Kong

people have now grown to panic proportions.

While we were

in Beijing, the Hong Kong dollar reached a new all time low

of HK$7.00 to US$1.00. Now it has further slumped to a

ridiculously low level touching HK$9.60 to US$1.00 on

24th September, 1983. The brain-drain has continued; and

people who are not eligible to emigrate have sent their

children abroad. We believe that this is due to the following

factors:-

(a)

Repeated pronouncements by Chinese officials concerning

Hong Kong with special emphasis on resuming sovereignty as

well as administration over Hong Kong on 1st July 1997;

Complete silence on the part of Great Britain.

(b)

(c)

Apparent lack of progress towards finding an agreeded

solution.

Many people in Hong Kong are beginning to wonder if China and

Great Britain still adhere to their joint communique issued

at the end of Mrs. Thatcher's visit to Beijing, namely, that

the two governments will seek to find a solution "with the

common aim of maintaining the stability and prosperity of

Hong Kong".

5.

China, on her part, has tried to allay the fears of the

people of Hong Kong by repeatedly saying that she has already

formulated a set of policies which will enable her to regain

sovereignty and administration over Hong Kong in 1997 without

adveresely affecting the stability and prosperity of Hong Kong.

But the people of Hong Kong are not convinced; nor have their

fears abated.

They do not doubt their own ability to govern

themselves; but they are convinced that without a strong buffer,

intervention by China is inevitable leading to the fear that

elements of life style they take for granted to-day