TNAG-1238-FCO40-1551-Future-of-Hong-Kong-1983 — Page 43

4.2

Chinese Characteristics

- 3 -

(a) The extraordinary dynamism of the Chinese

people has responded to the government's long-time "positive non-interventionism" or laissez-faire policy with a zeal and

(b)

Extmarking?

to

way Put it.

enthusiasm that has virtually no counterparts.(text, page 3)

The majority of Hong Kong's Chinese are still basically Chinese, and would be willing to have Chinese sovereignty - if it is not Communist. (framed para., page 5)

(c) Hong Kong Chinese especially the older

people - have a great affinity for China, but the young people, now a majority, don't have the same family ties. (framed para, page 12)

(d)

The Chinese people are basically the same everywhere. The economic and political system under which they live either deters them, or makes it possible to realize their potential. With a deep and ancient culture, and an innate feeling of superiority, they nevertheless realize the need for western technology, management expertise, and money. (framed para.

page 25)

(e)

?

The Chinese are very pragmatic, and very patient. They will tolerate a longer-term development process than westerners. We must

be optimistic that the Chinese will be logical

4.3

>

and realize it is in the West's interest to work

with them in fulfilling their political and economic ambitions - for our mutual advantage. (framed para. page (3)

Mutual Importance

(a) The increasingly important banking relations between Hong Kong and China will continue as China modernizes and opens to the international economy; Hong Kong's role will further enhance Hong Kong's standing. (text, page 22)

(b)

The "China Connection" is critical to the future of Hong Kong's industrial growth, particularly for such labor-intensive sectors as textiles and garments. Given continuation of present PRC policies, labor-intensive operations will tend to move to the lower-cost nearby special economic zones (SEZs).

or other locations in Guangdong province, while Hong Kong will remain the center for finishing and marketing. (text,

page

26)

(い)