(Substitute Brief No 8)

CONFIDENTIAL

SECRETARY OF STATE'S VISIT TO HONG KONG: 30 JUNE

EF NO. 3:

MEETING WITH THE EXECUTIVE COUNCIL ROINES TO MAKE IN RESPONSE TO QUESTIONS

FUTURE OF HONG KONG

1.

Understand that the Governor had a successful visit to

China and that Deng Xiaoping stressed the importance of

confidence and investment. Chinese clearly have a realistic

appreciation of the part Hong Kong can play in their drive

Sino-British relations excellent.

for modernisation.

the outlook is very good.

NEW TERRITORIES LEASES

So

2. There is clearly a practical problem about the land

leases in the New Territories. We are looking into ways

of dealing with it which would remove the significance of

1997.99 If asked if the Executive Council will be

consulted 7 Yes, the Executive Council will of course be

consulted.

CHINESE OFFICIAL REPRESENTATION IN HONG KONG

3.

Understand that the Chinese raised this with the Governor

in Peking. British position is the same as the Governor's:

an official Chinese representative is neither necessary nor,

at present, appropriate and the danger of his becoming

involved in local affairs is real. In the meantime glad to

learn that unofficial arrangements working so well.

CHINESE VISA OFFICE IN HONG KONG

4.

Understand this matter was fully discussed in Exco

before approval was given for an office to be opened.

CONFIDENTIAL

/VIETNAMESE

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