TNAG-2607-FCO40-3798-International-support-from-Japan-regarding-the-future-of-Hon-1992 — Page 34

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The

present situation in-Hong-Kong. The Governor's proposats

continue to attract steady support from the community (by a

margin of about 2:1 according to a series of opinion polls). business community are understandably anxious to see the current

difficulties resolved soon. But the economic fundamentals in

Hong Kong remain sound. As you know, the Chinese have reacted

harshly to the Governor's proposals and the fact that he

announced them before engaging in detailed discussion with the

Chinese. Their statement casting doubt on the validity of

government contracts and franchises stretching beyond 1997 is

inconsistent with the Joint Declaration and the Basic Law.

demand that the Governor should withdraw his proposals as a pre-

condition for any discussion is wholly unrealistic. The Governor

has of course emphasised that his proposals are just that: proposals for discussion, and the Governor would be happy to discuss any alternative proposals China may have for the elections in 1995 which would be open, fair and acceptable to the people of Hong Kong.

Their

The 25th meeting of the Sino-British Joint Liaison Group took place recently in Hong Kong. The Chinese side unfortunately refused either to discuss our proposals for the 1995 elections,

or to transact any other business on the JLG agenda.

The Chinese side have been seeking to intimidate Hong Kong and foreign firms, by suggesting that those who support the Governor's proposals may expect to suffer commercially after 1997. This is dangerous and irresponsible behaviour, and does

not sit comfortably with China's commitment under the Joint Declaration to preserve Hong Kong's stability and prosperity.

It is clearly important that China and Britain should return to

calm discussion as quickly as possible.

We for our part are ready for this at any time. It would be very helpful

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