TNAG-2709-FCO40-3915-House-of-Commons-Select-Committee-on-Foreign-Affairs-and-Par-1993 — Page 24

2.

IMPLICATIONS FOR HONG KONG/BRITAIN

How long will you delay introducing the legislation to LegCo?

The Governor and ExCo have said that a decision will be made

after Easter.

- But we cannot delay the legislative process in Hong Kong

indefinitely. The aim is to pass legislation this session so that orderly arrangements can be made in time for the

elections in 1994-5.

What steps could China take against Hong Kong?

Hope that Chinese side will recognise their shared responsibility for ensuring the stability and prosperity of Hong Kong, and will agree to talk about the points that divide us. Not in anyone's interest for China to seek to inflict economic damage on Hong Kong.

Comment on Hang Seng Index?

- Has always been a volatile market. But underlying

economic fundamentals strong.

Damage to British Commercial interests

-

Trade with China is growing

and the balance of trade is in

China's favour. We want to maintain close commercial

relations. Would very much regret it if our disagreement over Hong Kong were to spill over into our broader bilateral relationship.

Appreciate that British businessmen are concerned.

We have

a responsibility to them, but equally we have a responsibility to do what we believe to be best for the

people of Hong Kong.

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