+
TSX 1/78
SELKET
I vinese
Possible Chinese demands on Hong Kong
we
Our proposal about leases is drafted in a way that
would 'allow the Chinese to deal with it in isolation;
hope they will. However, they might not. This note covers possible demands which the Chinese might make in return for their acceptance of our plan. In each case the "response" gives a skeleton version of the way in which we should reply
to the Chinese demand. The note makes the following
assumptions about our own objectives:
(i) we wish to obtain Chinese approval for our tactic
on leases without, if possible, giving anything
in return, since in our view the action proposed
is in the mutual interest of China and HMG.
Their approval will have to include agreement to us making some public reference to their having
been informed of what we are doing and having raised no objection;
(ii)
(iii)
we wish to erode the significance of 1997 but
without substituting a specific alternative date;
we would like from the Chinese assurances (public if possible) about their acceptance of the status
quo for a long time to come. We realise that these would have to be in general terms but would
look for formulae which made the commitment as
long term as possible.
Chinese demands and our response
2.
Specific economic facilities.
The Chinese use Hong
Kong for direct transhipment of goods by sea, rail and air. They might say that, since the land is really theirs, they see no reason why they should pay an inflated price for it, and
/contd.......
SECRET