TNAG-1716-FCO40-2396-Hong-Kong-1987-Review-of-Representative-Government-1988 — Page 50

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CONFIDENTIAL

CALL ON LORD GLENARTHUR BY M. BARIANI: 20 JANUARY 1988/

FUTURE OF HONG KONG

HRB 011

19 JAN 1988

Objective

*

1. To convey a positive and optimistic picture of Hong Kong's prospects, while emphasising that confidence is fragile and needs to be carefully nurtured.

Points to Make

1.

Kong:

We are generally very encouraged by developments over Hong

implementation of Joint Declaration progressing smoothly; Sino British cooperation over Hong Kong close and

constructive;

-

much evidence of sensible and pragmatic attitude in Peking

towards Hong Kong:

Hong Kong economy booming (12% growth in 1987; 11% in 1986)

2.

But

Hong Kong therefore has much to be confident about. confidence is fragile. People are concerned about the future. So

there is no room for complacency. We work hard to maintain confidence. Hope our friends and partners will support us in this. Believe it is in all our interests that Hong Kong should continue to

prosper both before and after 1997.

(DEFENSIVE)

(a) Emigration: Emigration is up. But Hong Kong has a long tradition of emigration. Moreover many of those who leave subsequently return having acquired foreign nationality.

(b)

Representative Government: We are committed to develop representative government in Hong Kong, but at a sensible pace, appropriate to Hong Kong's circumstances. Over hasty action would not be in Hong Kong's best interests. Believe majority of people in