been two main reasons for this. One is the anger and shock created in Hong Kong, as in the rest of the world, by the events in Tiananmen Square. Watching these events many in Hong Kong feared for themselves the fate of Shanghai in 1949. The second is that the government in Peking became more suspicious that Hong Kong had become a base for subversion against their regime. I believe that it is better to state these anxieties frankly on both sides. But the great economic benefits which Hong Kong and its successful capitalist system now bring to parts of Southern China should help to alleviate those
concerns.
An example of the way in which the machinery has come to a halt is over Hong Kong's plan to build a new airport. Hong Kong is a dynamic society: in the headlong pace of development of South East Asia Hong Kong needs to keep moving forward if it is to keep its position. Hong Kong's existing airport will not meet the requirements of a bustling economic centre in the next century so a new airport is both necessary and a symbol of Hong Kong's confidence in its own future. We understand that and so do the Chinese. But key questions remain as to how the airport should be financed, and to what extent the Chinese should be consulted as the scheme progresses. It is reasonable given that the project will be expensive and have long term implications for Hong Kong that the Chinese Government should have the necessary information on which to base a judgement. it is not reasonable that the Chinese should claim to exercise a degree of control which would prevent the Hong Kong Government from exercising their duty to manage the project. I hope that when I visit Peking we will be able to make progress on this issue. The Chinese need to decide what sort of Hong Kong they want to inherit in
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