TNAG-1420-FCO40-1903-Hong-Kong-Parliamentary-Sub-Committee-on-Race-Relations-and--1985 — Page 86

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CONFIDENTIAL

FUTURE OF HONG KONG

Background

General

1.

Hong Kong performed

THIS IS A COPY

THE ORIGINAL HAS BEEN CLOSED FOR

40

YEARS UNDER FOI

EXEMPTION No. 27(1).

well in 1984 (9% growth):

only be a

however rate thus far in 1985 should

temporary setback, and long term prospects (apart from

danger of US protection i sm) are good. Hang Seng Index recently reached a 4 year high, and has risen nearly 1000 points in past year. Hong Kong dollar pegged to US dollar,

but has remained stable despite latter's fluctuations.

Joint Liaison Group

2. First meeting of the Joint Liaison Group took place in London in July. Main discussion centred on Hong Kong's

participation in the

GATT.

Discussions will continue at next

meeting in Peking from 26 29 November.

-

Land Commission

3.

well.

Third meeting of Land Commission in August went very

Full agreement was reached with the Chinese on legal

docujmentation for land sales, extensions and modifications

of lease conditions.

Basic Law

4. Basic Law Drafting Committee (BLDC) set up by Chinese

in June, with 59 members, 23 of whom are from Hong Kong.

Ji Pengfei, Director of PRC State Council's Hong Kong and

Macau Office i s Chairman of BLDC. The first full session

was held in Peking on 1 July 1985.

5. The Hong Kong members of the BLDC are now engaged in

establishing a

the Territory.

Basic Law Consultative Committee. (BLCC) in

A constitution was adopted on 7 September.

CONFIDENTIAL

2.