TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 42

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Regarding the question of how to maintain Hong Kong's prosperity in the runup to 1997, Deng Xiaoping said, "This is the heart of the matter which requires the co-operation of the British and the Government of Hong Kong. But we are confident

of getting British co-operation. In the future we will look after

British interests, especially British interests in Hong Kong. Can they not co-operate? Can they transfer all their capital away?"

China now

Turning to the recent slide in the value of Hong Kong dollar, (Deng said) while man-made factors were at work a continuously Buoyant US dollar was also a contributory. Deng Xiaoping further pointed out, "China will take note of the confidence issue put forward by some people. A considerable number of Hong Kong people may leave Hong Kong, which is to be expected. But it is hoped that the

situation will not get out of hand. Provided the British do not

act rashly, Hong Kong can maintain its present status. We do not

want to see the trade of Hong Kong coming to a standstill. depends on Hong Kong for a large part of its foreign exchange. Hong

Kong has, to a definite extent, played a role in the four modernisations. However, the four modernisations do not have to rely on Hong Kong, and the modernisation plans will not be affected by reduced foreign

exchange. The foundation of China's construction does not lie in

Taiwan or Hong Kong, but in the mainland. It would be achieved

through our own efforts, including opening China to outsiders and

attracting foreign capital.

"We have made it clear that Hong Kong will be governed

by Hong Kong people after 1997. The people of Hong Kong will take

part in local administration, as well as judicial, financial and

monetary affairs. Patriots in Hong Kong should elect those best

qualified to govern the territory and train up qualified people,

who should preferably be from the younger generation. By that time,

I shall be over 90 years old. Some Chinese should be chosen to participate (in the administration) and participation should be

gradual. All of you here share the responsibility and you have

/......