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FM HONG KONG 190410Z MAR 79 See
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19 MAR ¡979
DESKBY F.C.0. 198930Z
DESKBY PEKING 190430Z
TO IMMEDIATE F.C.O.
TELEGRAM NUMBER 391 OF 19 MARCH, 1979
INFO IMMEDIATE PEKING.
MY TELEGRAM NO. 374: NEW TERRITORIES LEASES
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1. WE AGREED EARLIER THAT I WOULD ONLY BROACH THE LEASES QUESTIONS
WHEN IN PEKING, IN BRIEFING THE PRESS HERE ABOUT THE VISIT WE WERE
CAREFUL TO DAMPEN DOWN EXPECTATIONS IN THIS SORT OF AREA AND WERE
SUCCESSFUL IN DOING SO.
2. NOW, HOWEVER, WE HAVE STORIES COMING FROM LONDON WHICH HAVE SUGGESTED STRONGLY THAT MORE SERIOUS THINGS ARE TO BE DISCUSSED (IN PARTICULAR THE HOLLINGWORTH STORY IN THE TELEGRAPH OF 5 MARCH AND, TO A LESSER EXTENT, THAT BY THE SCMP'S POLITICAL CORRESPONDENT ON 17 MARCH MY TELEGRAM NO. 389, NOT TO PEKING). IN ADDITION I HAVE RECENTLY HAD AN INDIRECT APPROACH FROM THE FIRST DIRECTOR OF THE NCNA TRYING TO SOUND OUT OUR INTENTIONS AND HINTING THAT THE CHINESE WOULD BE PREPARED TO DISCUSS THE
LEASE QUESTION BUT EXPECT US TO MAKE THE RUNNING,
3. WITH THE CONFUSION WHICH MUST HAVE BEEN CREATED IN THE MINDS OF THE CHINESE BY CONFLICTING PRESS STORIES, AND WITH THIS' INDIRECT APPROACH FROM THE NCNA, I THINK IT WOULD NOW BE DESIRABLE TO DROP A HINT TO THE CHINESE THAT I WILL WANT TO SAY SOMETHING ABOUT LAND LEASES IN THE NEW TERRITORIES IN THE CONTEXT OF FUTURE INVESTMENT IN HONG KONG. I AM REINFORCED IN THIS VIEW BY THE SKETCHY PROGRAMME SO FAR PUT FORWARD BY THE CHINESE FOR MY TIME IN PEKING (PEKING TELEGRAM NO. 21) IF 1 AM TO TALK ABOUT LEASES IT IS ESSENTIAL THAT I SHOULD DO SO TO SOMEBODY SENIOR AND KNOWLEDGEABLE LIKE LIAO CHENGZHTH, I THINK IT IS ALSO IMPORTANT THAT I SHOULD DO SO EARLY IN THE VISIT. IF WE DO NOT GIVE THE CHINESE A HINT OF MY INTENTIONS I AM WORRIED LEST THEY DO NOT PROVIDE THE OCCASION OR HAVE NOT
DONE THEIR HOMEWORK.
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