TNAG-1357-FCO40-1798-Constitutional-development-in-Hong-Kong-1985 — Page 186

6. WE HAVE BEEN DISTURBED BY THE INDICATIONS THAT WE HAVE HAD OF CHINESE CONCERNS ABOUT THESE DEVELOPMENTS. I SHOULD LIKE TO MAKE

FOUR THINGS QUITE CLEAR.

(A) THE FIRST IS THAT THE UNITED KINGDOM IS NOT ABDICATING AND WILL NOT ABDICATE ITS RESPONSIBILITY FOR HONG KONG.

(B) THE SECOND IS THAT THE HMG AND THE HONG KONG GOVERNMENT REMAIN FULLY COMMITTED TO MAINTAINING BOTH THE PROSPERITY AND STABILITY

OF HONG KONG.

(C) THE THIRD IS THAT AS THE SECRETARY OF STATE ASSUPED MR WU XUEQIAN IN LONDON IN JUNE WE HAVE BEEN PROCEEDING VERY CAUTIOUSLY AND CAREFULLY IN DECIDING THE MODIFICATIONS WHICH WE HAVE MADE

OVER THE LAST 18 MONTHS.

(0) THE BRITISH SIDE RECOGNISES THE IMPORTANCE OF ACHIEVING

COVERGENCE BETWEEN ANY REFORMS TO THE GOVERNMENT STRUCTURE IN

HONG KONG?38943 1997 AND THE SAR GOVERNMENT STRUCTURE POST 1997.

AS DR WILSON SAID IN THE JOINT LIAISON GROUP WE AGREED THAT THERE

WAS A NEED FOR CO-ORDINATION.

WE ARE ACCORDINGLY VERY PLEASE THAT IT HAS BEEN AGREED THAT

THERE SHOULD BE INFORMAL CONTACT BETWEEN THE TWO SIDES WHICH WE

BELIEVE WILL BE VALUABLE IN PISPELLING ANY MISUNDERSTANDING ON

THESE POINTS.

7. WE TRUST THAT MR JI'S VISIT WILL CONVINCE HIM OF OUR DETERMINATION TO KEEP HONG KONG PROSPEROUS AND STABLE. OUR PUBLIC FINANCES ARE SOUND, FAR SOUNDER THAN THOSE OF MOST OTHER COUNTRIES. WE ARE CONTINUING TO BUILD UP THE INFRASTRUCTURE OF HONG KONG AND TO PROMOTE ITS GROWTH AS A MANUFACTURING CENTRE, AS A FINANCIAL CENTRE, AND AS A MAJOR COMMUNICATIONS CENTRE. HONG KONG WILL HAVE IN 1997 AN EVEN BETTER ROAD SYSTEM, AN EVEN LARGER CONTAINER PORT,

A MUCH LARGER UNIVERSITY SYSTEM, A MORE UP TO DATE STOCK EXCHANGE, MORE HOTELS FOR TOURISTS, ETC., ETC. THIS IS PRACTICAL EVIDENCE

THAT WE ARE DOING WHAT WE SAID WE WOULD DO IN THE JOINT DECLARATION.

WE HAVE STRONGLY ENCOURAGED ECONOMIC CO-OPERATION WITH CHINA AS

THE FIGURES SHOW AND HAVE SHOWN OUR CONFIDENCE IN CHINA'S DEVELOP-

MENT FOR EXAMPLE BY AGREEING TO THE OFF-TAKE OF ELECTRICITY FROM

THE GUANGDONG NUCLEAR POWER PLANT CONFIDENTIAL

3