TNAG-2916-FCO40-4191-International-support-from-European-countries-regarding-the--1993 — Page 96

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with Ministerial colleagues and the Governor.

They concluded that we should now move on to a more intensive phase of negotiations, and we have passed a high level message to the Chinese side to this effect. We have told them that we want to pursue the idea of an interim agreement very quickly and hope that this will be the main subject of the next round of talks which are on 19 and 20 November.

5. The next few weeks will therefore be crucial. Unless we are able to reach at least an interim agreement in that time, it will be necessary for practical reasons to introduce legislation on the more urgent issues. It would therefore be very helpful if those who support our Hong Kong policy were to touch on the Hong Kong issue in their meetings with President Jiang Zemin in Seattle. In particular, it would be most useful to make clear from the perspective of Hong Kong's closest economic partners that there are a number of features of Hong Kong that will need to be preserved if the territory is to go on attracting international business and investment, and thereby fuelling growth throughout Southern China. The points might be made on the following lines:

- Australia/New Zealand /Canada has long standing trade and investment ties with Hong Kong, and therefore has a close interest in Hong Kong's economic success before and after 1997;

Hong Kong's political, economic and Legal systems have all been crucial to what it has achieved so far. It is a matter of concern to all Hong Kong's partners that confidence in the ''one country, two systems'' approach should not be shaken and that the Chinese authorities should show by their actions that they are serious about preserving Hong Kong as a successful economic centre in a region of growing importance;

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Have been following the talks between China and Britain closely. These are of course a bilateral matter between the two countries. But all those who trade with and invest in Hong Kong an early and successful conclusion which will remove the present uncertainty and enhance confidence in a smooth and cooperative transfer of power between Britain and China.

6. The points are obviously most effective if made in your host Government's own way. But we hope they could cover this ground.

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