83
GRS 420
SECRET
FM HONG KONG @81112Z MAY 79
TO PRIORITY F C O
O40||
SECRET KK OLD/1
TELEGRAM NUMBER 549 OF 8 MAY
INFO PRIORITY PEKING.
MIPT: HONG KONG'S FUTURE.
INDEX
9 MAY 1979
no 183.7
TOP COPY
IT IS DISAPPOINTING, ALTHOUGH NOT TOTALLY UNEXPECTED, THAT THE CHINESE SHOULD REFER SO DIRECTLY TO SOME OF WHAT WAS SAID DURING MY VISIT. AS QUOTED, SUNG ALSO TAKES A DIFFERENT LINE FROM DENG (ALTHOUGH THE SAME AS HUANG HUA) ABOUT WHETHER 18 YEARS TO THE END
OF THE LEASE IS ''A LONG TIME OR NOT, BUT OF COURSE DENG CERTAINLY DID NOT SPEAK AS IN THAT LAST SENTENCE OF PARA 4 OF MIPT WHICH GIVES A NEW EMPHASIS TO THE SIGNIFICANCE OF 1997.
2. THE AFP REPORT SAYS THAT SUNG'S REMARKS WERE MADE TO A GROUP OF VISITING FRENCH JOURNALISTS. THE FIRST THING IS TO GET CLEAR EXACTLY WHAT SUNG SAID. I WOULD BE GRATEFUL IF THE EMBASSY COULD CLARIFY THIS, IF POSSIBLE WITH A VERBATIM TEXT.
3. DEPENDING ON WHAT SUNG ACTUALLY SAID, I THINK WE ALSO NEED TO CONSIDER WHETHER WE SHOULD SAY SOMETHING TO THE CHINESE ABOUT THE NEED TO EXERCISE GREAT CARE IN ANYTHING SAID ON HONG KONG'S FUTURE LEST CONFIDENCE MIGHT BE AFFECTED. WE MIGHT POINT OUT THAT I HAVE ALREADY SAID IN PUBLIC (AT MY PRESS CONFERENCE ON 6 APRIL) THAT I DID NOT INTEND TO REVEAL DETAILS OF WHAT WAS
SAID IN PRIVATE CONVERSATIONS: WE BELIEVE THAT THE LESS THAT IS SAID PUBLICLY AT THIS STAGE ABOUT DELICATE MATTERS LIKE HONG KONG'S FUTURE, THE BETTER. I DID NOT IN FACT DISCUSS HONG KONG'S LONGTERM FUTURE WHICH I SAID WAS A MATTER FOR HMG AND THE CPG, BUT I DID RAISE THE MATTER OF THE LEASES WHICH PRESENTED OR WOULD PRESENT A SHORT TERM PROBLEM AFFECTING INVESTOR CONFIDENCE.
4. I THINK THIS PRESS LEAK EMPHASISES THE NEED FOR AN EARLY MOVE OR TO CLARIFY THE POSITION OVER THE LEASES.
SECRET
/5. MEANWHILE,