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assume that by saying Hong Kong will continue to be financial/commercial centre or that currency will continue to be
internationally tradeable, this will just happen. Hong Kong people,
and investors, need proof of effective guarantees against Chinese
interference.
7. Central issue is to devise package in which Hong Kong people
will have confidence. Must therefore agree arrangements which will
reassure them. Given joint Sino-British aim of maintaining Hong
Kong's stability and prosperity, confident such an arrangement can
be worked out.
Meanwhile vital nothing said or done to damage confidence.
This very fragile.
8.
9. Any collapse of Hong Kong economy through lack of confidence
would reflect badly on Britain and China. We attach importance to
maintaining good relations with China. Our aim remains to seek a
settlement acceptable to Britain, China and people of Hong Kong.
!/
10.
British Government obtains no revenues from Hong Kong, other
than those of normal trading partner, contrary to what the Chinese
seem to think.
11.
Chinese may press you to discuss the subject. If so, grateful
you keep solely to 'Points' given to you by Richard Luce.
CHINA'S SOUTH WEST ENERGY RESOURCES
12.
Would appreciate your assistance in another specific
context. Grateful you do what you can in China to ascertain current
thinking on development of South West Energy Resources and possible scope for British participation. DTI would be glad to pass any such information to British industry.
DEFENSIVE
13. Sure you understand that at this delicate stage of talks, inappropriate for Government members (eg Mr Goodlad) to visit China
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