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3 563
206
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NAJAVED II MIGATRY NO. $1
- 8 OCT 1979
DESK OFFICER
SECRET
INDEK
по
SECRET
FM PEKING 058833%
OCT 79
TO PRIORITY FCO
TELEGRAM NUMBER 864 OF 5 OCTOBER
INFO PRIORITY HONG KONG.
HONG KONG TELNO.1343:
NEW TERRITORIES LEASES.
See Bas
ZZZA
10 I AM NOT SANGUINE ABOUT THE CHANCES OF THE CHINESE
UNDER PRESSURE OF MARKET FORCES COMING TO ACCEPT OUR PROPOSALS, THEY HAVE SAID, AND WE MUST BELIEVE THEM, THAT IF WE PERSIST WITH OUR LEGISLATION THEY WILL HAVE TO REACT (PRESUMABLY BY A PUBLIC STATEMENT) AND THAT THIS WOULD NOT HELP CONFIDENCE.
ARE THEREFORE PREPARED TO INCUR ECONOMIC DAMAGE NOW IN PURSUIT OF THEIR POLITICAL OBJECTIVES AND THIS COULD WELL REMAIN THE
CASE IN THE FUTURE.
2.
THEY
THEY WILL CALCULATE THAT WE TOO ARE UNDER ECONOMIC PRESSURE, THAT OUR RECENT APPROACH IS PROOF OF THIS AND THAT TIME IS ON THE CHINESE SIDE.
3. WE MUST ALSO TAKE INTO ACCOUNT THEAT THE CHINESE SEE HONG KONG IN A WIDER CONTEXT, INCLUDING TAIWAN AND MACAO, WITH TAIWAN THE MOST IMPORTANT ELEMENT. THEY WILL BE UNWILLING TO TAKE ACTION IN RESPECT OF HONG KONG THAT COULD UPSET THEIR TAIWAN PLANNING OR WEAKEN THEIR POSITION IN RELATION TO THE TAIWAN AUTHORITIES. THE ESSENCE OF THEIR POSITION ON TAIWAN IS THAT SOVEREIGNTY MUST BE CONCEDED. ONCE THAT IS DONE, VERY LIBERAL ARRANGEMENTS FOR AUTONOMY CAN BE MADE. EQUALLY ON MACAO IT NOW SEEMS, CONTRARY TO OUR EARLIER INFORMATION, THAT THE PORTUGUESE MAY HAVE CONCLUDED A SECRET AGREEMENT RECOGNISING CHINESE SOVEREIGNTY (GEORGE'S TELELTTER 920/254/1 OF 30 JULY TO SAMUEL). IT IS NOT UNTHINKABLE THAT THE CHINESE HOPE TO USE HONLJKONG AND MACAO AS EXAMPLES FOR THE PEOPLE AND GOVERNMENT OF TAIWAN,
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4. ALL THIS