TNAG-1717-FCO40-2397-Hong-Kong-1987-Review-of-Representative-Government-1988 — Page 107

for Hong Kong to be responsible for conducting its own

external trade, have its own freely convertible currency,

and enjoy free flow of capital without exchange control. In short it provides for the highest degree of continuity

after 1997.

The Chinese Government have every reason to want to

make the Joint Declaration work. And we are determined

to see that it does. On direct elections I can assure

you there is no reason whatsoever why they should not be

introduced before 1997. It seems clear that there is a

strong trend in public opinion in Hong Kong that supports

the introduction of direct elections well before 1997.

But views are sharply divided as to whether this should

happen in 1988. The Hong Kong Government will need to

take account of this, and all other relevant factors, in

the decisions which it will announce in its White Paper

on 10 February.

The suggestion that we are putting UK trade with

China before the interests of Hong Kong is frankly

nonsense. We have upheld and will continue to uphold

As the Foreign

Hong Kong's interests to the full.

Secretary said in the House on 20 January, it would be an

illusion to suppose that we could create good relations

with China at the expense of Hong Kong: Hong Kong

prospers when London and Peking are in harmony.

Our aim

is to secure the firmest possible foundation for the

future stability and prosperity of Hong Kong.