TNAG-1844-FCO40-2619-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 34

22 MAP 99 14:30

FROM COJ TECH FADIO

TO FCO NEWS

PAGE.033

TRANSCRIPT R: HUNG KONG SKLECT COMMITTEE IKETING

12

22 NAK 89

FORKTUR SECRETARY (COBID};

it is the one

It

My attention is directed to article 105 immediately preceding it - which is regarded as sufficient. provides for independent finances of the SAR:

*It shall use its

they shall

The

financial revenues exclusively for its own purposes; not be handed over to the Central People's Government. Ceutral People's Government shall not levy taxes in the SAR.

I think that is as explicit as you could get.

CHAIRMAT:

Is it realistic, Secretary of State, to think in terms of this HK SAR expanding and that a wider area might be covered by these independent financial policies and, indeed, obviously by the

bard currency prevailing in the area?

FORRIGE SECRETARY :

any

I think it is a question that can scarcely be directed at

If you asked me to offer a judgement, I

of us actually.

would say that the authorities in the People's Republic of China are themselves seeking to establish special economic zones which are designed to have locally some of the vitality that is associated with Hong Kong and I think I am right in saying that Chairman Deng Xiaoping himself has talked at some time of the desirability of trying to create other Kung Kongs in China, but I

would ant like to go beyoud thai.