TNAG-1260-FCO40-1600-Briefings-for-Ministers-and-FCO-officials-on-the-future-of-H-1983 — Page 68

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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.

1.

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.

8. 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.

9. British Government obtains no revenues from Hong Kong, other

than those of normal trading partner, contrary to what the Chinese

seem to think.

[DEFENSIVE]

10. Sovereignty: Chinese and British positions well-known. We

fully realise importance of sovereignty issue to China. We are not

inflexible. Are willing to consider any solution to Hong Kong's

future which would be acceptable to Britain, China and Hong Kong.

11. Acceptability: We are taking views of people of Hong Kong fully

into account. Made known to us through variety of official and

unofficial channels. In this context, Governor and unofficial

members of Hong Kong's Executive Council visited London early July

for consultations with Ministers. I shall be visiting Hong Kong

soon myself.

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