TNAG-2921-FCO40-4196-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 56

CONTRACTS AND FRANCHISES

(IF PRESSED) CHINESE THREATS NOT TO HONOUR CONTRACTS AND FRANCHISES?

Under the Joint Declaration and the Basic Law contracts and franchises signed by the Hong Kong Government will continue to be valid after 1997. The Hong Kong authorities have in the past discussed a number of such contracts with the Chinese; and senior Chinese officials have confirmed that China would continue to take a positive attitude.

10

supp.3.12.BB.JRB