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AZ PEKING 390736Z PAR 79
TO IMMEDIATE FCO
TELEGRAM NUMBER 346 OF 30 MARCH 79
INFO IMMEDIATE HONG KONG
3 APR 1979
No J27.4
See (57)
53
MIPT
1. CONSIDERING THAT THE PROGRAMME MADE IT IMPOSSIBLE
TO RAISE THE MATTER EARLIER, THE MEETING WITH DENG WAS ON THE WHOLE A GOOD ONE. DENG SHOWED HIMSELF VERY ALIVE TO
THE IMPORTANCE OF CONFIDENCE AND INVESTMENT IN HONG KONG.
2. ON THE LONG TERM FUTURE, WHILE REHEARSING THE CLASSIC CHINESE POSITION, DENG WAS CONCERNED TO ALLAY INVESTORS' ANXIETIES, SAYING AT ONE POINT THAT HONG KONG WOULD "MAINTAIN ITS CAPITALIST SYSTEM UNTIL EARLY NEXT CENTURY.
3. ON THE MORE IMMEDIATE QUESTION OF LEASES HE WAS AT FIRST RATHER BAFFLED BY ENGLISH LEGAL CONCEPTS, BUT EVENTUALLY APPEARED TO ACCEPT THAT ALL THAT WAS PROPOSED WAS
THE REMOVAL OF THE TERMINAL DATE IN LEASES, THAT THIS REQUIRED NO CHINESE ACTION AND DID NOT CONFLICT WITH
THE CHINESE POSITION,
HUANG HUA WAS LESS FORTHCOMING BUT ALSO
APPEARED TO BE TEMPORISING, HE RAISED THE QUESTION OF OFFICIAL CHINESE REPRESENTATION IN HONG KONG ( ON WHICH 1 AM REPORTING SEPARATELY) BUT THIS WAS IN THE CONTEXT OF IMMIGRATION, AND APPEARED TO BE PART OF HIS ORIGINAL BRIEF RATHER THAN A REACTION TO WHAT HAD BEEN SAID EARLIER TO DENG ABOUT LEASES.
5. WE THUS FINISHED THE DAY BY HAVING PUT
TO THE CHINESE THE GENERAL SCHEME OF WHAT WE PROPOSED TO DO ABOUT LEASES, INDICATING THAT IT DOES NOT CONFLICT WITH THEIR POSITION ON HONG KONG AND THAT NO ACTION IS REQUIRED
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