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in 1973 he gave him an aide mémoire which explained why we could not accept the proposal (copy attached). The matter was last raised at a high level when the then leader of the Opposition, Mr Heath, visited China in May 1974. On that occasion the recently disgraced Vice-Premier Teng Hsiao-p'ing told Mr Heath that the Chinese felt a need for a representative in Hong Kong but would do nothing underhand there if they get one. He added however that "the matter could be discussed again later".
5. We believe that the Chinese want a representative in Hong
Kong:
(a)
(b)
6.
to establish a Chinese presence in Hong Kong which they consider to be part of Chinese territory, "temporarily administered by the British";
to increase Chinese prestige and leverage among the population of the Colony:
There are three main reasons why we do not wish to accept the Chinese proposal. We think it would:
(a) (b)
( ၁ )
severely damage business confidence in and over Hong Kong; create an alternative focus of loyalty in Hong Kong
and thus make the Government of the Colony more difficult
and
as a corollary of (a) and (b) damage relations between China and the UK.
7. We do not believe that continued rejection of the Chinese proposal will seriously damage the relations between Britain and
Nor is there China or put at risk any of our other interests. anything which a Chinese official representative could achieve in Hong Kong which is not already possible through the existing network of contacts headed, on the communist side, by the Director of the New China News Agency.
8.
The population of Hong Kong would be likely to see the arrival of an official Chinese representative as a step towards handing back the colony. It might also precipitate a confrontation from which the PRC could not retreat. Our objective therefore should clearly be to try to postpone any such change until we are ready to move very rapidly forward to a negotiated settlement of the whale Hong Kong question. The granting to the Chinese of an
/official
CONFIDENTIAL