TNAG-2079-FCO40-2959-Hong-Kong-press-coverage-and-reports-1990 — Page 231

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But we do not treat Hong Kong as if its future could be separated from the future of China. That would be self-indulgent and shortsighted. We will not help the people of Hong Kong by refusing to have anything to do with China's leaders. At bottom we and the Chinese have similar interests in seeing Hong Kong prosperous, stable and dynamic. We, because of our long and strong commercial responsibility stake; the Chinese, because of the contribution which Hong Kong can make to China's modernisation. China has a major economic stake in preserving the phenomenon of Hong Kong. It is a vital source of hard currency and economic energy for the

export indesty mainland. Much of the industry in Guangdong provinces is know the result of Hong Kong investment.

Hong Kong investment. Real growth over the last ten years, even in the shadow of political uncertainty, has averaged over 7%. Per capita GNP about £7,200 per year - is among the highest in the region. This tiny place is the eleventh largest trading entity in the world. The richer and more confident we leave it, the more valuable it will be to China and the better the prospect for its economic and political freedoms.

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The Sino-British Joint Declaration of 1984 established what remains the soundest available basis for

Hong Kong's future. It is a binding international agreement which specifies that Hong Kong will have its own government; preserve its capitalist system; retain its human rights, laws, legal system, convertible currency, financial markets and free port. In the last year the Chinese have frequently reaffirmed their commitment to "one country, two systems". China's recently promulgated Basic Law states that socialism will not be extended to Hong Kong for at least half a century.