TNAG-2034-FCO40-2898-Visits-by-members-of-the-House-of-Lords-to-Hong-Kong-1990 — Page 12

Late in his talk, Li Peng again took up the Hong Kong question: You raised the importance of Hong Kong to China, and are correct about this. But, you forgot to say that China is important to Hong Kong. China is Hong Kong's largest trading partner, and trade will reach 20 billion US$ this year. From the perspective of China's exports, Hong Kong is a major transshipment point and 10, 15, or 20 percent of the value of exported products is captured in Hong Kong. The mainland has provided the conditions for the high standard of living in Hong Kong. As you said, the June 4 incident affected Hong Kong. As to the apprehensions, the incident was distorted, and as the true picture emerges apprehensions will be eliminated.

We are concerned about the outflow of capital and talent from Hong Kong, but not terrified of it. For individuals, the question of whether to stay or go depends on stability. Capital and people will return if they can make a good income and have a stable life. In any case, new talent is continually produced, so if some people leave, the new talent will arise and take their place. We are concerned but not apprehensive.

Some people are now trying to play three cards with regard to Hong Kong. First, the internationalization of the issue; second, the will of the people in Hong Kong; and, third, the outflow of talent. They are trying to use these issues to force reconsideration of the agreement over Hong Kong, but we will not backtrack.

Hong Kong need not be concerned about 1997. After the return we will maintain the capitalist system and the current way of life will continue. We want Hong Kong to be a trade center, a financial center, and a technology center. If Hong Kong adopts the socialist road these centers would cease to function in the same way for China. As to the management of Hong Kong after 1997, we have the Basic Law and will build on that law. We don't want to see Hong Kong become a base of anti-Chinese activity, but also won't force socialism on Hong Kong.

As to the fear that a Tiananmen incident could occur in Hong Kong, I don't need to reply. But to state facts, if people of Hong Kong don't come to Beijing to strike and demonstrate then they do not need to fear a Tiananmen for Hong Kong. Tiananmen was occupied for 48 days. I won't say more on this issue. More and more people have come to know the true facts about the incident.