TNAG-1370-FCO40-1816-Relations-between-Hong-Kong-and-China-1985 — Page 77

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expenditure of foreign exchange on imported goods and services, which will inevitably affect Hong Kong exporters, China's long term importance to Hong Kong, assuming there is no complete reversal of

the open-door policy and по early relaxation of protectionist

pressures in the West, is likely to remain considerable.

8.

If this assumption of growing economic interdependence is

correct, what are the political implications? One is that the

economic incentive to China to honour the Hong Kong Agreement is unlikely to diminish. Another may be that there will be increasing disinclination on the part of the Hong Kong business community to upset the Chinese: pressure from the taipans not to go too fast or

too far over the development of representative government, for example, is unlikely to diminish.

6 November 1985

L.G. Ehrman

W G Ehrman

Hong Kong Department

In linear trends an

The

小

particularly illuminating.

table 2

Presumably the arguments

in paragraph 6 above app moving to Sankr

ли

в автопроз

China, where he all-important foreign exchange

lain

is bem drith

central Government m'lek

ай

сти

бат

6/10.

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