TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 88

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54.

Secondly, it is assumed that the Sino-British

Joint Declaration on the future of Hong Kong will be fully implemented, so that Hong Kong will continue to be an autonomous economy with a free enterprise system, free

trade and an international character. As a result, its

position as a manufacturing, trading, financial, transport and communications centre in the east Asian region will be

maintained, but with some changes in emphasis possible.

55.

Given these pre-conditions, there should be

ample scope for further development in Hong Kong-China economic relations in the future. Hong Kong should continue to provide China with the diversified range of

the services it needs but is unable to supply efficiently

for itself or to obtain conveniently from elsewhere.

China should continue to supply much of the goods for Hong Kong's daily needs. The implications of growing Hong

Kong-China economic relations for the longer term are

discussed in the following sections.

56.

(b) China's importance as a supplier of

essential commodities to Hong Kong

By the mid-1990s, in addition to China's

traditional role as an important supplier of water (at present, about half of the total consumption in Hong Kong) and foodstuffs (at present, about 40% of the total consumption in Hong Kong), China is likely to become a significant supplier of electricity, and perhaps also gas, to Hong Kong. In general, China is likely to remain the

largest supplier of imports (mainly consumer goods, and

raw materials and semi-manufactures) even in the longer

term. This degree of dependence on China for essential supplies might be a cause of concern, but given the

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