TNAG-1896-FCO40-2690-Calls-on-Francis-Maude--Minister-of-State-for-Foreign-and-Co-1989 — Page 139

HONG KONG AND THE HONGKONG 3000 FOUNDATION

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Since 1842, Hong Kong has been a British colony when the port of Victoria was established on the island, which was ceded in perpetuity. Further tracts of land were acquired, by cession in 1860 and by lease in 1898. From the beginning, the British Crown exercised all rights of sovereignty over the territory of Hong Kong. And that is the case today. In 1997, Britain has agreed to hand back sovereignty of the entire territory to China. Thereafter Hong Kong island, Kowloon and New Territories will be part of Chinese sovereign territory. But it is the fate and well- being of the people who live there that is our concern.

The Sino-British Joint Declaration signed in 1984 was a triumph of diplomacy, China promised that in resuming the exercise of sovereign power after the long years of British rule, Hong Kong would be made a Special Administrative Region which for fifty years would be allowed to continue as before with its own legal and capitalist systems and lifestyle, with a high degree of autonomy. This is the pragmatic concept of "onc country, two systems".

Hong Kong is an economic miracle. Despite its miniscule size it ranks eleventh in the league of trading nations and is one of the leading financial centres of the world. It has the largest container port in the world. It is the world's largest exporter of watches and radios and second largest of garments and toys. In the last decade, it has maintained economic growth averaging over 8% per year. The average per capita income of its population at US$9,600 is second only to Japan in Asia. These achievements have won for Hong Kong the admiration and respect of countries around the world. They are the achievements of an industrious people for it has no natural resources except a deep water port. Is it any wonder that the people of Hong Kong do not wish to leave a place in which they have settled and prospered?

Since the signing of the Joint Declaration, many people have sought an insurance policy in the form of a second passport so that if the promises in the Joint Declaration are not kept, they will at least have an alternative home, a home of last resort. The anxious search by increasing numbers for this form of insurance in the last few years has been disruptive to the community and threatens the territory's economic growth. Some have left for good. Many families have had to be separated with one spouse living thousands of miles away in U.S.A., Canada or Australia to qualify for residency. It is sad to see families torn apart because they are worried for their future.

Hong Kong is valuable to China. It accounts for one-third of China's foreign exchange; 70% of investments in China and provides several million jobs in Guang- dong province across the border. But Hong Kong's continued success and its value to China depend on its people. Without them, and without their complete commit- ment, Hong Kong will not thrive. And if Hong Kong does not remain prosperous and useful to China, there will be little incentive for China to keep its promise of "one country, two systems".