TNAG-2921-FCO40-4196-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 58

LAND FUND AND EXCHANGE FUND

There are billions of pounds stashed away in the Land Fund and Exchange Fund. A big prize for China. It should not fall into the wrong hands in 1997.

The Hong Kong economy is remarkably successful. It is in the interests of Britain and China to keep it that way. China is firmly committed to the terms of the 1984 Joint Declaration, a solemn and legally binding international agreement. This provides specific guarantees about the financial autonomy of the Hong Kong Special Administrative Region Government from 1 July 1997. Annex 1 Chapter 5 states:

"The Hong Kong Special Administrative Region shall deal on its own with financial matters, including disposing of its financial resources and drawing up its budgets and its final accounts".

supp.3.12.BB.JRB

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