TNAG-1252-FCO40-1585-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 110

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UNCLASSIFIED

PREMIER ZHAO'S CONVERSATION WITH AUSTRALIAN JOURNALISTS: HONG KONG

FROM FILE 801/13/2

THE FOLLOWING IS A ROUGH TRANSCRIPT OF QUESTIONS AND ANSWERS ON

THIS SUBJECT DURING RANALD MACDONALD'S INTERVIEW WITH PREMIER ZHAO ON 14 MARCH:

MACDONALD:

I RECENTLY SPOKE ABOUT HONG KONG AT A MEETING WITH THE FOREIGN AFFAIRS COMMITTEE OF THE CPPCC. I WAS TALKING ABOUT THE CLIMATE OF OPINION THERE AND I AM CLEARLY NOT CONCERNED WITH THE QUESTION OF SOVEREIGNTY. BUT I WONDERED WHETHER FOREIGNERS COULD NOT HELP TO MAINTAIN A CLIMATE WHICH WOULD SUSTAIN PROSPERITY IN HONG KONG.

ZHAO: CHINA'S POSITION ON THE FUTURE OF HONG KONG IS WELL KNOWN. WHEN CONDITIONS ARE RIPE, CHINA WILL RECOVER SOVEREIGNTY OVER ALL/ALL PARTS OF HONG KONG. BUT CHINA WILL BE FLEXIBLE AND WILL MAINTAIN THE EXISTING SOCIAL AND ECONOMIC SYSTEMS AND THE WAY OF LIFE OF THE PEOPLE THERE. AS FOR YOUR QUESTION, ANYTHING FOREIGNERS CAN DO WHICH IS CONDUCIVE TO THE MAINTENANCE OF PROSPERITY AND STABILITY IN HONG KONG WOULD BE WELCOME.

MACDONALD: DREW SOME PARALLEL BETWEEN THE DIFFICULTIES OF DOING BUSINESS IN CHINA ITSELF AND THE POSITION IN HONG KONG. HE SAID THAT IF BUSINESSMEN FOUND THINGS TOO DIFFICULT THEY COULD GO ELSEWHERE WITH THEIR CAPITAL. BUSINESSMEN WOULD LIKE TO KNOW AS A MATTER OF SOME URGENCY WHAT THEY CAN TAKE AS THE BASIS OF THEIR FUTURE ACTIONS IN HONG KONG.

ZHAO: CHINA HAS A FIRM POLICY OF BEING OPEN TO THE OUTSIDE WORLD WHICH IT WILL NOT CHANGE EASILY. A VERY IMPORTANT THING IS THAT

WE WILL PROTECT FOREIGNERS WILL GET DUE PROFITS FROM INVESTMENTS. THEIR LEGAL INTERESTS. THE LEGAL SYSTEM IN CHINA IS NOT PERFECT AND

CHINA IS SPEEDING SOME INVESTORS NEED GUARANTEES FOR THEIR PROFITS.

UP ITS WORK ON LEGISLATION. BUT EVEN WHILE THE LEGAL SYSTEM IS NOT PERFECT WE WILL SIGN CONTRACTS AND THESE, ONCE SIGNED, WILL HAVE THE BINDING FORCE OF LAW. SOME BUSINESSMEN FIND IT NOWVERY COMPLICATED.

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