TNAG-1886-FCO40-2677-Overseas-visits-by-Sir-David-Wilson--Governor-of-Hong-Kong---1989 — Page 11

CONFIDENTIAL

HONG KONG

The starting point for any discussion of Hong Kong must be the Sino British Joint Declaration of 1984, under which the territory will become a Special Administrative Region of the People's Republic of China on 1 July 1997 with a high degree of autonomy. The Joint Declaration provides in great detail for the preservation of Hong Kong's present economic, legal and other systems, its

freedoms, and its way of life. Given that 92% of the

territory was due to revert to China by Treaty in 1997 without any safeguards, the conclusion of the Joint

Declaration was a major achievement. It was and is recognised as such by the vast majority of the people of Hong Kong, even though they would have preferred the perpetuation of British administration had that been

attainable.

Four years after the signing of the Joint

Declaration, Hong Kong is as busy and dynamic as it has ever been. In the past 3 years the economy has grown by over 30%, and growth of 7-8% is expected this year. Exports are booming. The traditional entrepot trade has revived and Hong Hong is now China's foremost trading partner. The container port is the busiest in the world in terms of throughput. The property market is buoyant; there has been a rapid growth in hotel construction to

cater for an increased tourist demand. A new Exhibition and Convention Centre, one of the most modern in the

world, has been recently completed and should enhance

Hong Kong's role as a regional business centre. The Hong Kong Government are embarking on a number of ambitious new infrastructure projects, including (subject to final decisions) a third harbour crossing and a new airport.