TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 142

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Any drastic change away from that would destroy confidence.

We all admire the way in which the Chinese leaders and people have

tackled the huge problems of modernisation:

and much will no

doubt change in the years to come.

But the problem is not what will happen by 1997 but what

people believe now will happen in Hong Kong. We cannot wait

until 1997 because investors have to consider investment now.

If confidence cannot be sustained now, Hong Kong will not be prosperous in 1983, let alone 1997. Then the very things we seek to preserve might have disappeared by the time the lease ends.

Against the background of recent Chinese history, and given China's

political system which is so different from that in Hong Kong,

time would be needed for people in Hong

Kong and abroad to have sufficient faith in new and untried arrangements to keep their

money and skills in the territory and make new investments.

But we cannot wait for this.

to us that our common objective of maintaining

the prosperity of Hong Kong can only be achieved if people

believe that the present arrangements for administering Hong Kong

will continue for a long time. There would be a most damaging

effect on confidence if changes in the administrative control of

Hong Kong by the UK, were introduced or announced now.

So we have to do something very soon and agree what it will be.

The Chinese position on

Can I now return to sovereignty. sovereignty is well-known, and I understand it, but it is

politically difficult for me just asassertion of your sovereignty

is important to you. Acceptance of this would involve Britain abrogating by Act of Parliament the treaties under which the

British administer Hong Kong.

To settle the future of Hong Kong by abrogating the treaties

alone would be unthinkable. It would produce immediate panic in

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