SECRET
CHINESE POSITION AND REQUIRED ONLY THAT THEY DID NOT OBJECT
TO ITS IMPLEMENTATION, DENG APPEARED TO RECOGNISE THAT IT REQUIRED NO ACTION ON THEIR PART. (CUI MINGTANG OF THE MFA
INTERVENED TO STRESS THAT ONLY THE REMOVAL OF THE DATE IN INDIVIDUAL LEASES WAS REQUIRED.) DENG CONCLUDED BY SAYING
THAT THE KEY POINT WAS FOR INVESTORS TO FEEL EASY.
5. IN THE AFTERNOON THE GOVERNOR SAW THE FOREIGN
MINISTER HUANG HUA, HE GAVE HIM AN ACCOUNT OF THE
DISCUSSION WITH DENG IN THE MORNING, EMPHASISING THAT THE
ACTION PROPOSED WOULD NOT CONTRADICT THE CHINESE POSITION
ON HONG KONG AND SAYING THAT DENG HAD NOT APPEARED TO
OBJECT TO THIS POINT. HUANG, WHO DID NOT SEEM TO BE FULLY BRIEFED ON THE SUBJECT, STONEWALLED BY SAYING THAT THE
LEASE STILL HAD 18 YEARS TO RUN AND THAT THE MATTER WAS
NOT URGENT. WHEN THE GOVERNOR POINTED OUT THAT THE MATTER
WAS NOT ONE OF THE NEW TERRITORIES LEASE AS SUCH BUT OF
INDIVIDUAL LAND LEASES, HUANG SAID IT WAS SOMETHING THAT
WOULD HAVE TO BE CONSIDERED AND THAT DENG HAD ALREADY
GIVEN DETAILS OF CHINA'S 'PRINCIPLED STAND ON THE HONG
KONG QUESTION. THE GOVERNOR REMARKED THAT DENG'S COMMENTS,
HAD BEEN FAVOURABLE.
50 THE GOVERNOR LATER SAW LIAO CHENGZHIH (WHO HAS PARTICULAR RESPONSIBILITIES FOR HONG KONG). THE
CONVERSATION WAS GENERAL AND VERY FRIENDLY. THE GOVERNOR
REFERRED TO THE CONVERSATION WITH DENG, SAYING THAT, WHILE HE UNDERSTOOD THE LATTER'S POSITION ON THE LONG TERM FUTURE, HE WAS GLAD THAT DENG ALSO UNDERSTOOD HIS OWN PROBLEMS
IN THE MORE IMMEDIATE FUTURE, LIAO SAID THAT HE COULD NOT
GO FURTHER THAN DENG, AND THAT THE MATTER REQUIRED STUDY,
BUT INDICATED OPTIMISM ABOUT THE SOLUTION OF BOTH THAT
AND SHORT TERM PROBLEMS.
CRADOCK
[SENT BY BAG TO HONG KONG]
FILES
HD.HK & GD
HD. FED
PS
'PS/LORD GORONWY "ROBERTS
PS/PUS
STP A DUFY
MR.CORTAZZI
MR.MURRAY
COPIES TO:
SIR IAN SINCLAIR
LEGAL ADVISER
3
SECRET