CONFIDENTIAL

41

F

RECORD OF A MEETING BETWEEN THE MINISTER OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS AND THE GOVERNOR OF HONG KONG AT THE FCO AT 10.30 AM ON WEDNESDAY, 19 JULY 1978

1.

Those Present:

The Rt Hon Lord Goronwy-Roberts

of Caenarvon and Ogwen

Mr Michael Stewart

Mr H AH Cortazzi

Mr D F Murray

Mr H R G Hurst

Mr G Haley

Mr M Hull

Mr W E Quantrill

Mr J Thompson

Mr J L Jones

Mr M Upton

Sir M MacLehose

Mr J Cater

Mr D Bray

HKK 026/2

RECEIVED IN REGISTRY MO. 51

S

4 AUG 1978

DESK OFFICER

INDEX

No

PA/

REGITRY

Action Taken

The Governor began by referring to the improving state of relations between China, the UK and Hong Kong. This he thought, meant that the climate for negotiations about Hong Kong's future was becoming increasingly favourable. We should be aware of this, and he asked that we should in particular try to ensure the success of the proposed triangular deal involving the sale of British machinery to China in exchange for coal for the new Hong Kong power station.

Mr Cortazzi and Mr Murray assured the Governor that the FCO recognised the importance of this opportunity and were doing everything possible to ensure its success. Mr Murray explained that this type of arrangement is as new to the Chinese as it is to us. Mr Cortazzi suggested that there was a need for a long term look at the future of Hong Kong in the light of the new Chinese attitude. Lord Goronwy-Roberts believed that it would be useful if we could have not only such a paper but also an up to date appraisal of current Chinese attitudes and intentions, which should be regularly reviewed. He suggested that the Governor should pursue this possibility with the FCO. The Governor felt that the need was for a contingency plan but Mr Murray explained

CONFIDENTIAL

/that

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