TNAG-1339-FCO40-1771-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Beijing-fo-1984 — Page 342

CONFIDENTIAL

Hong kong in the best interests of its people.

8.

The agreement of itself cannot bring about a successful future for Hong Kong. That lies, as it always has done, largely in

your hands.

You, the Hong Kong people, have earned the respect of

the entire world for the astonishing success story which you have

written. You have contributed resilience, imagination and sheer

hard work. Above all you have shown the courage to adapt to

changing circumstances. The development of representative Government in Hong Kong is part of the same process of constructive

change. Her Majety's Government fully supports this process, which will take on a form of Hong Kong's own choosing.

9.

Hong Kong, more than most places, looks outwards for its

livelihood. It finds ready markets in the developed world. It is

natural that traders and investors should have watched carefully the

negotiations and their outcome. They wanted to be assured that their investments would be protected, their sources of supply remain reliable, and their freedom to move funds freely in and out would

remain untramelled. All these have been assured in the agreement. It is not surprising that the Governments of Hong Kong's major trade partners have already stated their appreciation of the agreement and have in many cases pledged to assist in its implementation.

10. The agreement permits all the essentials which support Hong Kong's international and economic relationship to be preserved:

Hong Kong's freedom to pursue its own economic policies

in accordance with its own needs;

The free enterprise system, free trade policies and the

free port;

Hong Kong's separate position within the GATT and other multilateral trade arrangements: and its freedom to develop its own economic and trade relations with all

states and regions;

A freely convertible currency;

CONFIDENTIAL