TNAG-2783-FCO40-4002-UK-business-interests-in-Hong-Kong-Chinese-discrimination-ag-1993 — Page 2

said fear the idea of independence and this fear has been

strengthened by growing moves in Taiwan, supported by a number

of prominent Americans that independence, as opposed to their present conceived plan of two systems, one government, this

development is certainly affecting their thinking on Hong

Kong.

Secondly in my last paragraph I believe the point I made there about a differing level of concern about Hong Kong's

contribution to their own national economy is a valid one.

The first time I ever went to China was back in 1974 and I

have to say that this time I regard

I regard what had been achieved

since the Mao era ended is nothing short of miraculous. China

to all intents and purposes, although it still labels itself a

Socialist market economy, is, in reality, economically a

booming capitalist state with a vast population and huge natural resources, although of course all these developments are taking place under authoritarian political rule.,

Wherever we went there were signs of massive

infrastructure development, new factories building up everywhere, with a large annual increase in exports and an annual growth rate of over 12% and a welcoming hand being extended to foreign investors, and most especially joint ventures, without any insistence common to other developing countries of the ownership of such being limited sofaras foreign participation is concerned, to 49%. In Shanghai and Canton new joint ventures are coming into being everywhere and are proving highly successful. Unhappily the British share of such movement is very small, We lag for instance far behind not

only Japan, Taiwan Singapore and Hong Kong and Macau themselves; but also, to name but two other highly successful

entrants into the Chinese Industrial economy, the U.S.A. Ge4rmany and France. Our hopes of gaining a bigger share will certainly not be enhanced if the Hong Kong issue is not resolved.

/

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Also, as I said in my last letter. the Chinese are becoming increasingly self-confident that with or without Hong Kong's Own earnings of freoign currency, etc., their own economy, nationally speaking is on the up and up, and likely

so to continue.