FCO_49_622_PLANNING_PAPER_ON_HONG_KONG_1976 — Page 32

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Page 32.

harsh and idiosyncratic regime in China and a rising

standard of living if the economy continues to develop

as at present.

17.

It is premature to speculate on what our own

attitudes, and those of the Chinese, will be at a date

so far in the future. Some options are given in Annex B.

Perhaps the most that could be said is that any arrange-

ment designed to avoid the worst difficulties for us would

need to offer sufficient inducements to the Chinese both

political, to help them over the sovereignty issue and the

1997 difficulty, and economic. But there is no certainty

that any approach, however carefully timed and however

loaded with inducements for the Chinese, would lead

to a clear-cut agreement. They may calculate that any

arrangement would place them in a weaker situation and

ourselves in a stronger than at present. They may

seek to put us off with the flexible but vague formulae

in paragraph 8 above and expect us, as at present, to

deduce their attitudes to the Colony by their actions.

These might point to a wish for the present status quo

to continue or a wish for a gradual evolutionary change

eg by the expansion of their economic, political and

cultural activities: either way we would imagine they

would be ready to give confidence building signs to the

business community and the population generally.

Neverthe-

less it should remain our objective to reach some clear-

Page 32fut understanding with China if this is at

all achievable.

Page 32

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