TNAG-1327-FCO40-1740-Future-of-Hong-Kong-Ministerial-statements-1984 — Page 100

If Chinese were used as the official language in the future SAR, training courses should be arranged to raise the language standard of civil servants;

Those who continue their service with the SAR Government should not be transferred to other offices in China;

Civil servants should not be prevented from standing for election; and once elected, no-pay leave should be granted, and those who have reached 45 should be allowed to retire early; and

That the local non-Chinese civil servants be granted right of abode in the United Kingdom as their children born after 1997 would become stateless.

Section V Financial System

4.21 This Section attracted little comment. That the Hong Kong SAR shall handle its own financial matters was welcomed. Questions were raised on likely tax structure under the SAR; on whether the Hong Kong SAR would have to contribute towards the cost of defence; on what would happen to the reserve fund held by the present Hong Kong Government; and whether the requirement for the SAR budgets and final accounts to be reported to the CPG for the record would lead to intervention by the CPG in the financial affairs of the Hong Kong SAR.

Section VI The Economic System and External Economic Relations

4.22 The provisions for the maintenance of the present capitalist economic and trade systems in Hong Kong were warmly welcomed both locally and overseas. The Hong Kong General Chamber of Commerce, the Chinese Manufacturers Association and the Hong Kong Federation of Industries issued a joint statement on the draft agreement to the effect that it "can be widely accepted by businessmen and industrialists as providing the best possible basis for continued economic prosperity ". Economic reports from the banking sector confirmed the generally enthusiastic reaction from business circles. The South China Morning Post Business News was also optimistic towards the future of Hong Kong in terms of economic opportunities in China and the Hong Kong entrepreneurs' involvement.

4.23 Views have focused on:

-Hong Kong's status as an international commercial centre, -transfer of technology,

commercial arbitration between Hong Kong and China.

4.24 Important points made were:--

The interests of Hong Kong should not come second to those of China in the event of a conflict of interest on matters of external economic relations;

A committee should be set up by government to negotiate with third countries for recognition of Hong Kong's status, and its representation in various international bodies including the GATT, MFA, etc.;

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