TNAG-1253-FCO40-1586-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 171

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Chinese assurances of this kind are intended to allay the fears of financially powerful Hong Kong businessmen. Feking is attempting to avert an economic collapse in the Asian trading and finance metropolis. However, observers doubt that the Communists will succeed in their attempt to pacify Hong Kong's capitalists. The latter remain sceptical and are already looking for a new 'firm base' for their companies in western countries. More long-term investments are now flowing in that direction than into Hong Kong factories.

The super-rich made provisions for themselves years ago. They "emigrated" to western countries to obtain a passport which en- ables them to leave Hong Kong at any time. But the great majority of Hong Kong Chinese have no chance of escaping Chinese sovereignty. The identity papers issued in the British Crown Colony do not entitle the holders to a right of abode in Great Britain as a new British law clearly stipulates.

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Virtually no one in Hong Kong doubts that the Colony will be taken over by the Feople's Republic of China. The discussion concentrates more on the timing and consequences of such a take-over. In the middle of last year, the Government in Feking caused dismay among a large proportion of the population by announcing that the Chinese flag would fly over Hong Kong. Stock prices plummeted.

Meanwhile most people have adjusted to the idea of living with

this time-bomb. People have begun to put their affairs in order, but they are not rushing things. This is the impression of one western

diplomat in Hong Kong.

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In

The Chinese Communists substantiate their claim to Hong Kong by declaring that the treaties concluded between China and Great Britain in the last century are void since they are "unequal treaties". these treaties China ceded important parts of the Hong Kong area, namely the Kowloon peninsula and the island of Victoria, to the British "in perpetuity". The so-called "New Territories" were leas- ed to Great Britain in 1898 for 99 years, i.c. until 1937. ly, Peking no longer recognises this agreement either.

Official-

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