TNAG-2477-FCO40-3607-The-Hong-Kong-Association-1992 — Page 60

March 1992

Henry Keswick Esq

Matheson & Co Ltd

3 Lombard Street

LONDON

EC3V GAQ

Thank you for your letter of 10 March and your kind words about my talk to the UK-Japan, 2000 Group. I will

not try to match you on references to Cinderella!

I very much take your central point. British investment abroad is a vital British asset. That is

nowhere more true than in Hong Kong: you quote the figures in your letter. In addition to being of benefit to Britain, this investment is of course of mark of British confidence in the future of Hong Kong, and therefore contributes in no small way to our wider objective of preserving prosperity and stability in Hong Kong, up to 1997 and beyond.

We have therefore worked hard with the Hong Kong Government to preserve Hong Kong as an attractive market for investment. I note what you say about Peking's non-statutory regulation after 1997. But as you know, Hong Kong will continue to have its own judicial system, and under the Joint Declaration and Basic Law the Common Law will continue to apply in Hong Kong post-1997. regulation of the markets will be by the Special Administrative Region authorities, not by Peking.

So

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