TNAG-1821-FCO40-2584-Emigration-from-Hong-Kong-1988 — Page 125

CONFIDENTIAL

057006

MDHIAN 1017

THE

AGREED THAT CLOSE CONSULTATION WAS VITAL. WE MUST NOT LET MINOR PROBLEMS WHICH WERE PROBABLY INEVITABLE, TURN INTO MAJOR ONES. PRESIDENT SAID THAT IF THIS, THE FIRST AND KEY EXAMPLE OF THE PRINCIPLE OF 'ONE COUNTRY TWO SYSTEMS'' WERE TO FAIL CHINA WOULD BE THE FIRST TO SUFFER, BECAUSE OF THE DOUBT THAT WOULD BE CAST ON CHINA'S GOOD FAITH. I SAID THAT BRITAIN ALSO COULD NOT ESCAPE CENSURE IF WE DID NOT GET THINGS RIGHT. BOTH SIDES WOULD BE BLAMED NOT LEAST BY THE PEOPLE OF HONG KONG. THE PRESIDENT SAID IT WOULD BE BEST IF NEITHER SIDE WERE TO INCUR ANY BLAME. HE PAID A SINCERE TRIBUTE TO THE PART PLAYED BY THE PRIME MINISTER IN ACHIEVING THE JOINT DECLARATION.

5. THE PRESIDENT HIMSELF BROUGHT UP THE SUBJECT OF THE RECENT PUBLICATION OF THE HONG KONG BASIC LAW AND TO THE FORTHCOMING VISIT OF THE MAINLAND BLDC DRAFTERS AND JI PENGFEI TO HONG KONG. I SAID THEY WOULD BE VERY WELCOME IN HONG KONG. I WAS PLEASED THAT THE HONG KONG PEOPLE WERE BEING GIVEN AN OPPORTUNITY TO COMMENT FULLY ON THE DRAFT BASIC LAW AND I APPRECIATED THE ARRANGEMENTS WHICH WERE BEING MADE TO CONSULT THE HONG KONG PEOPLE, SO THAT THEIR VIEWS COULD BE TAKEN INTO ACCOUNT.

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I MENTIONED MY DISCUSSIONS IN HONG KONG BEFORE ARRIVING IN CHINA. I SAID THAT I FOUND THE HONG KONG ECONOMIC SITUATION VERY GOOD. BUT THERE WAS ONE WORRY OVER EMIGRATION OF LARGE NUMBERS OF YOUNG TECHNICALLY QUALIFIED PEOPLE. THIS WAS A REAL PROBLEM AND NOT JUST SOMETHING MADE UP BY THE PRESS. IN SOME QUARTERS THERE WAS A LACK OF CONFIDENCE. I SAID THAT ONE OF THE WAYS OF KEEPING THESE IMPORTANT PEOPLE IN HONG KONG WAS TO GUARANTEE ECONOMIC PROSPERITY AND POLITICAL STABILITY WHICH OUGHT TO BOLSTER CONFIDENCE. RESPONDING AT CONSIDERABLE LENGTH, THE PRESIDENT AGREED THAT BOTH THE ECONOMIC AND THE POLITICAL FACTORS WERE IMPORTANT. ON THE ECONOMIC SIDE, HE HAD SEEN HOW HONG KONG'S LINKS WITH THE MAINLAND HAD DEVELOPED FROM A TIME WHEN THERE WERE ONLY TWO HONG KONG REPRESENTATIVE OFFICES IN THE PEOPLE'S REPUBLIC TO THE PRESENT WHEN

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