TNAG-1253-FCO40-1586-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 43

THAT CHINA RECOGNISED THAT FOR HONG KONG TO BE SUCCESSFUL IT WOULD

HAVE TO OPERATE AS A FREE MARKET CAPITALIST SYSTEM. THAT WAS SOME-

THING THAT WAS ACCEPTED AND THAT CHINA WOULD SEEK TO WORK OUT

ARRANGEMENTS WHICH WOULD ALLOW AN ADMINISTRATION, A SEPARATE

ADMINISTRATION AND, I RECALL I BELIEVE, AN AUTONOMOUS OR ONE WITH

AUTONOMY WHICH WASN'T SPECIFIED, TO FUNCTION HERE. CHINA WOULD

REGARD ITS FAILURE TO MANAGE A SUCCESSFUL TRANSITION AS A VERY

SERIOUS SETBACK TO ITS OWN SELF INTEREST. I CAN UNDERSTAND THAT

FOR A NUMBER OF REASONS. I AM SATISFIED THAT THE BRITISH AUTHORITIES

ARE COMMITTED TO SEEKING TO ENSURE THAT THAT TRANSITION PROCESS

IS SUCCESSFUL AND THAT THE POST-1997 PERIOD WILL PROTECT THE

INTERESTS OF THE PEOPLE OF HONG KONG. WHATEVER DIFFERENCES I MIGHT

HAVE WITH MRS THATCHER IN SOME AREAS OF HER POLICIES, I HAVE TO

FREELY ACKNOWLEDGE THAT SHE IS STEADFAST IN HER PURPOSEFULNESS AND

THAT THERE WOULD BE NO DOUBT ABOUT HER COMMITMENT TO SEEK TO ENSURE

THAT THIS TRANSITION PROCESS WAS SMOOTH AND SUCCESSFUL. THAT IS,

JUST AS THE CHINESE HAVE STRESSED TO ME THAT THE BEST INTERESTS OF

THE PEOPLE OF HONG KONG IS UPPER MOST IN THEIR MIND AND THEIR MAJOR

OBJECTIVE IS FOR HONG KONG TO CONTINUE OPERATING POST-1997 AS IT

HAD BEEN UP UNTIL THAT POINT. I AM EQUALLY PERSUADED THAT THE

BRITISH AUTHORITIES HAVE THE SAME COMMITMENT. NOW I CANT TELL YOU

ANY MORE THAN THAT. I THINK YOU HAVE PICKED UP FROM WHAT I SAID, THAT AUSTRALIA HAS A JUSTIFIABLE INTEREST IN WHAT TAKES PLACE IN

THIS MATTER. CERTAINLY WE DO NOT HAVE A RIGHT TO BE INTRUSIVE AND

WE CERTAINLY DONT SEEK IN ANY WAY TO INVOLVE OURSELVES IN THE

PROCESSES WHICH ARE UNDERWAY. MERELY TO INFORM OURSELVES.

QUESTION: DO YOU SEE ONE OF THE MAIN PROBLEMS FOR AUSTRALIA (IF

THIS IS HANDLED BADLY) AS BEING THE MASSIVE REFUGEE OUTFLOW FROM

HONG KONG ?

MR HAYDEN: I AM ONLY PREPARED TO SAY WHAT I SAID THAT THE EVIDENCE

IS THAT 30TH SIDES ARE KEEN TO SEE A SMOOTH TRANSITION AND THE

EVIDENCE AT THIS POINT IS THAT THAT WILL BE ACHIEVED. THE MODALITIES

HAVE TO BE WORKED OUT AND NO DOUBT THERE WILL BE SOME HAGGLING

ABOUT THE SPECIFICS OF THOSE MODALITIES. AT THIS POINT ANYWAY BOTH

SIDES ARE KEEN TO HAVE A SUCCESSFUL RESULT. I SEE NO REASON THEREFORE

WHY THEY SHOULDNT BE SUCCESSFUL. CONSEQUENTLY, I DONT THINK IT

APPROPRIATE TO REFLECT ON THE PROPOSITION YOU PUTTING FORWARD. THAT

WOULD JUST ADD TO UNCERTAINTY. I DONT THINK UNCERTAINTY IS JUSTIFIED

CERTAINLY NOT ON THIS POINT.

QUESTION: DO YOU HAVE ANY UNDERSTANDING WHETHER THE ISSUE OF

SOVEREIGNTY BETWEEN THE UNITED KINGDOM AND CHINA HAS BECOME MORE

FLEXIBLE OVER RECENT WEEKS?

MR HAYDEN: I THINK THE PROBLEM ABOUT THE FUTURE ISNT SO MUCH OVER

SOVEREIGNTY BUT OVER AUTHORITY AND ADMINISTRATION OR THE QUESTIONS

WILL BE, BUT I REALLY THINK THEY ARE MATTERS THAT THE BRITISH

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/AUTHORITIES