TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 155

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He thought it unavoidable that some fluctuations would

take place after China had announced that it would recover sovereignty. But China would try to avoid major fluctuations and, with co-operation, this could be done. But he could tell

the Prime Minister that when the Chinese Government had formulated

its policy decisions it had taken various factors and possibilities into consideration. Many people said that if the prosperity of Hong Kong could not be maintained, this would affect China's

modernisation drive. There would be some effect but it was incorrect

to believe that it would affect this policy to a large extent. If the modernisation programme was based on the maintenance or decline of prosperity of Hong Kong, then the modernisation decision

was not a sound one. As regards the flight of foreign investment, provided China pursued appropriate policies the foreign investment

which had left would come back.

When China announced. its intention to resume sovereignty, it

would at the same time announce the policies to be pursued and the

with regard to Hong Kong systems. measures to be taken/ In the next year or two, China would solicit widespread views from various circles in Hong Kong about this issue.

The Chinese side was pleased that on this matter the British Government had put forward many suggestions. He meant by this the proposals relating to 1997. China hoped that in the intervening period no big fluctuations would take place and that, after the recovery of sovereignty, China would benefit from British suggestions in the spirit of co-operation.

There was one point upon which he did not want to dwell but which he wished to make. If there were very large and serious disturbances in the next fifteen years, the Chinese Government would be forced to consider the time and formula relating to the

recovery of its sovereignty over Hong Kong. The Prime Minister → had said there might be a disastrous effect. China would

To avoid this kind of disaster have to make its decisions in the face of such a situation. / he hoped that after the current visit the two Governments would hold

consultations and discussions. There had been no decision on the

level of such talks but they could be conducted through diplomatic

channels and the issue discussed with a view to avoiding major

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/disturbances.

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