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07 1880
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SECRET
SECRET
FM PEKING 300707Z MAR 79
TO IMMEDIATE FCO
TELEGRAM NUMBER 345 OF 38 MARCH 79
INFO IMMEDIATE HONG KONG
HKCKOWO!! 31
3 APR 1979
*.51
REGI
INDEX
No 1827.4 See (57)
&
PERSONAL FOR CORTAZZI
YOUR TELNO 212: NEW TERRITORIES LEASES
- AT HIS MEETING WITH THE GOVERNOR ON 29 MARCH, DEN XIAOPING LAUNCHED STRAIGHT INTO THE ISSUE OF THE FUTURE OF HONG LONG. HE SAID THAT CHINA HAD A CONSITENT POSITION THAT SOVEREIGNTY OVER HONG KONG LAY WITH CHINA, BUT HE ACKNOWLEDGED THAT HONG KONG HAD ITS OWN SPECIAL STATUS,
1997 WAS STILL 19 YEARS AWAY, AND DISCUSSIONS MIGHT BE HELD
ANY BEFORE THEN ACCORDING TO THE CIRCUMSTANCES PREVAILING, SOLUTION WOULD HAVE AS ITS PREREQUISITE THAT HONG KONG WAS PART OF CHINA. NEVERTHELESS IT COULD BE SAID WITH CERTAINTY' THAT THE DISCUSSIONS WOULD RESPECT THE SPECIAL STATUS OF HONG KONG, IN VIEW OF THE CONCERN OF PEOPLE ABOUT INVESTMENT HE WISHED TO GIVE AN ASSURANCE THAT EVEN WHEN THERE WAS A POLITICAL SOLUTION, IT WOULD NEVER AFFECT INVESTMENTS. DENG THEN DREW AN ANALOGY WITH TAIWAN AND MACAO AND, ON THE FORMER, AFFIRMED THAT CHINA WOULD RESPECT TAIWAN'S SPECIAL STATUS AND WOULD NOT CHANGE ITS SOCIAL SYSTEM OR AFFECT ITS LIVING STANDARDS. THE ISLAND COULD ENJOY LOCAL AUTONOMY AND HAVE ITS OWN ARNED FORCES ALTHOUGH IT WAS PUCT OF CHINA, BUT THERE COULD NEVER BE TWO CHINA'S OR ONE AND A HALF CHINA'S, THIS POLICY APPLIED TO HONG KONG AND MACAO ALSO. REASON FOR THE ASSURANCE ON SPECIAL STATUS WAS SIMPLE. &a falon. CHINA NEEDED HONG KONG AND THE POLICY WAS BENEFICIAL
TO SOCIALIST CONSTRUCTION.
THE
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