TNAG-2714-FCO40-3920-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1993 — Page 40

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14-JUL-1993 16:31

JAMES LEE

TRANSCRIPT B

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COMMITTEE

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MR. ALASTAIR GOODLAD

14 JULY 1993

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FOREIGN AFFAIRS SELECT

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MR. ALASTAIR GOODLAD:

There are reports which we have all read of the resurgence of

there are reports of local unrest in

overheating and inflation;

the countryside;

there are an increasing number of migrant

workers moving about in China; there are undeniable problems, an austerity programme being reported. I think myself that the process of economic reform is probably irreversible - there are too many people now benefitting from it in China for it to be easily turned back but any instability in China obviously has economic effects in Hong Kong because their economies are very closely interlinked, inextricably interlinked, so any reduction in growth in China, in its GDP, is likely to have an effect on Hong Kong.

Whether serious instability would have political effects, I am not absolutely sure because I come back to the fact that the Chinese have an identity of interest in achieving sensible solutions in Hong Kong and they have a commitment to implement the Joint Declaration and the Basic Law. I think that perhaps if there were serious instability, as with any country it might make it more difficult to get decisions taken, but perhaps you would like to ask Sir Robin if he has any comments to make.

CHAI RMAN:

If we could ask Sir Robin if he now wishes to answer all these questions.

Someone was telling this Committee the other day that the method of Chinese control of the money supply really came down

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