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(c) they will not take surprise action; and

(a) in due time there will have to be

negotiations.

The first of these reassertions has been made

publicly in the United Nations and elsewhere. The

on seperate occasions to both last three were made to me by the Chinese Prime

me

W/Aulam Royle

this Vice Minister to /during ん

Minister, and Minister for Foreign Affairs (dur:

June and

my visits to Peking in/November.

They confirm the

assessment made in DOP(71)83 and strengthen the

conclusions of that paper.

3.

Parea in reams of British interest

The arguments shu

The arguments on the British interest in come down in favor of retaining Hong Kong.are still balanced. As an

D

economically developed dependency, Hong Kong's

入 interests can clash with those of our own industry

and of our new partners in the European Community.

It will cost us something in political terms to

maintain the interests of Hong Kong within the

Community. But Hong Kong is not a liability to our

current relations with China (though the Chinese

demand for an "official representative" in Hong Kong

remains unresolved). We still have a substantial

stake in Hong Kong's economy. Two million of the

four million Chinese in Hong Kong have British

nationality, but while Hong Kong remains a dependency

there is no immigration problem, since they have no

right of abode here.

4. The gist of the matter in 1972/73, therefore,

is that China does not want to take back Hong Kong

now or to initiate negotiations about its future,

that the population continue to want us to stay,

/and

Foreign Attaints 6 # Senior

Foreign Ministry

officials

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