TNAG-2711-FCO40-3917-House-of-Commons-Select-Committee-on-Foreign-Affairs-and-Par-1993 — Page 37

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. We see no reason why disagreement over Hong Kong

should spill over into our broader bilateral relationship.

China wishes to join GATT, which of course provides that

countries should deal with each other without discrimination.

Senior Chinese officials have publicly denied that China

would discriminate against British firms.

Appreciate British businessmen's concerns. We have a

responsibility to maximise British trade, but equally we have

a responsibility to do what we believe to be best for the

people of Hong Kong.

DAMAGE TO HONG KONG ECONOMY?

3.12.PR. JRB

Essential for Hong Kong's economic success that its way of

life and legal system are maintained after 1997 and supported

by a Legislative Council that has been elected fairly and

openly in Hong Kong.

Chinese officials have said many times that there is no

connection between political and economic issues. Cannot

believe China would want to damage well-being of Hong Kong

people.

Investors rightly taking the long view. Economic

fundamentals in Hong Kong excellent.

LO

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Economic Issues