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7.
Mr Hawke asked about the time table for the talks between
now and September. The Governor thought they would be continue
to be held roughly once a month. The Chinese wanted to go faster
than this but there were important issues to be determined which
could not be rushed.
8.
Mr Hawke asked how the views of Hong Kong people would be expressed on the proposal that Hong Kong would be a SAR. The Governor said that no view had yet been reached. The Chinese
claimed to represent the people of Hong Kong and to understand
their views; the Hong Kong people saw it rather differently.
This was a very sensitive issue for both the Chinese and for
HMG. At present, the Government was in contact with many levels of opinion through well known and well established channels. But
the time would come when it would be necessary to determine
whether the terms of an agreement were acceptable to the Hong Kong
people. There would be a need to decide whether this should be done through normal channels or by some special process.
9. Mr Hawke asked what effect the Taiwan dimension would have
on the discussions. The Governor said that, if arrangements for
Hong Kong turned out to be unsatisfactory, it was doubtful whether
the Chinese would ever be able to achieve reunification with Taiwan.
International opinion would be influenced by what happened over Hong Kong in judging whether the Chinese were serious about a
negotiated solution for Taiwan.
10. Mr Hawke asked how the Governor saw the growth of the economy during the next couple of years. The Governor said he was reasonably optimistic, though he would like to see more retained investment.
The Financial Secretary said that, on the old GDP figures, the
increase in GDP in 1983 was 8% and, on the new basis, the increase
was 5.9%. A growth rate of about 6% was expected in 1984. There
was little unemployment and no central Government debt. Exports
were up in 1983 by 14% in real terms. As our trade formed 150%
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