TNAG-1236-FCO40-1549-Future-of-Hong-Kong-1983 — Page 84

CONFIDENTIAL

749

NEED TO CORRECT 'SING TAO' STORY,

7.2.83 RE HK

(A)

TWO PRINCIPLES...

(I)

(II)

THE UNEQUAL TREATIES RESULTING FROM OPIUM WAR ARE NOT TO BE

TOLERATED AND THEREFORE CHINA'S RETRIEVAL OF HK IN 1997 IS

INEVITABLE (HE COMMENTED THAT NO CHINA OFFICIAL CAN BE

EXPECTED TO BE ANOTHER LI HONG ZHANG).

THE PROSPERITY AND STABILITY OF HK MUST BE MAINTAINED

(B) THREE IMMUTABLES...

(1)

HK'S CAPITALIST SYSTEM

(II)

HK'S STYLE OF LIVING

(III) HK AS A SUCCESSFUL FINANCIAL CENTRE AND FREE PORT (HE GAVE AN

ASSURANCE THAT PRIVATE PROPERTY AND FOREIGN INVESTMENTS WOULD

BE PROCTECTED)

(C), HK WOULD BE GOVERNED BY HK PEOPLE--HE ELABORATED THAT WHILST HE

HAD VISITED HK SOME 20 TIMES, HE WOULD NOT REGARD HIMSELF AS 'A HK PERSON' AND REITERATED THAT IT WOULD BE INDIGENOUS HK ?

PEOPLE GOVERNING HK IN DUE COURSE. HE ADDED THAT PEOPLE OF

CHINESE DERIVATION SHOULD HAVE SELF-CONFIDENCE THAT HK CAN BE

SO GOVERNED. HE ASKED HIS AUDIENCE IF THAT WERE 'A GOOD IDEA'.

THIS DREW FROM THE GUESTS A ROUND OF APPLAUSE.

CHINA: ACHIEVEMENTS AND ERRORS

(A)

CHINA HAD ACHIEVED MUCH BUT HAD MADE MISTAKES FROM TIME TO TIME

(EG THE LATE 50'S AND EARLY 70'S WERE CITED AS EXAMPLES, ALSO

THE GANG OF FOUR)

(B) CHINA IS TIRED OF FURTHER CHANGE (STRONG IMPLICATION HERE THAT

THE REFERENCE IS TO POLITICAL CHANGE) AND THERE WOULD BE NO

FEAR OF CHANGE

(C) CHINA AIMS NOW TO MAKE 'STEADY STEP-BY-STEP PROGRESS FORWARD'

(D) CHINA'S ECONOMY IS 'GOOD'

(E) CHINA'S INDUSTRIALIZATION IS GOING AHEAD 'FAST'

(F)

CHINA'S 'MAJOR MISTAKE' IS ITS MASSIVE POPULATION. THE

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CONFIDENTIAL