Background/key facts
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1. The Australian Government are sympathetic to the problems Hong Kong faces. They are one of the major trading partners of Hong Kong and they realise that it is in their own national interests to keep Hong Kong prosperous.
2. The Australian community in Hong Kong is 10,000 strong and there are 300 Australian companies based there. Hong Kong is Australia's fourth largest market for exports, their third largest source of migrants and their largest source of business migrants.
3.
The
Chris Patten made his first major policy speech as Governor to Hong Kong's Legislative Council on 7 October.
proposals he put forward were designed to meet the needs of
effective and accountable government; to make the electoral
system more democratic and fair; and to maximise the chances
of continuity through 1997 by exploiting to the full the
flexibility available within the Basic Law. An account of
these proposals was sent by the Secretary of State to Senator Evans in advance of the speech.
4.
Progress on the new airport for Hong Kong has been hampered by the unwillingness of the Chinese to agree to the
proposed financing arrangements. On 9 September the Chinese side of the airport committee made certain suggestions which we built on in reverting to them on 16 September with a full set of proposals. Our proposals would eliminate almost all of the "problems" the Chinese had identified, but were conditional on the Chinese agreeing that the Special Administrative Region Government's share (as well as HKG's share) of the premia from land sold to the airport railway
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