195

23 655

SECRET

DESKBY HONG KONG 241100Z

FM PEKING 240935Z SEP 79

TO IMMEDIATE FCO

SECRET

AMENDED

TELEGRAM NUMBER 825 OF 24 SEPT 79

AND TO IMMEDIATE HONG KONG

DISTRIBUTION: 24/9/79

тор вору

нки

HKK ap/L

RECEIVED IN

2 5 SEP 1979

LESK OFFICE INDEX

194

40. 51

SUBISTAY Taka

J259 TL

по

Sep 196 197

лаа

NEW TERRITORIES LEASES

I WAS SUMMONED TO THE FOREIGN MINISTRY ON 24 SEPTEMBER BY ASSISTANT FOREIGN MINISTER SONG, WHO READ OUT TO ME THE REPLY TO OUR PROPOSAL OF 5 JULY AND THEN HANDED ME A HEMORANDUM GIVING THE TEXT (SEE MIFT)

208

See

бес НКК

04/1

(270)

1881

2. I UNDERTOOK TO TRANSMIT THIS. GIVING MY PRELIMINARY AND PERSONAL REACTION I SAID THAT, WHILE THE FRANKNESS OF THE CHINESE COMMENTS WOULD BE APPRECIATED, I FOUND IT A

1

DISAPPOINTING REPLY. AS HAD EARLIER BEEN MADE PLAIN, WE

APPRECIATED THE STATEMENT BY VICE-PREMIER DENG IN MARCH AND

THIS HAD HAD A GOOD EFFECT, BUT, THERE WAS A SHORT TERM

PROBLEM ABOUT LAND LEASES WHICH COULD NOT BE DEALT WITH

BY GENERAL ASSURANCES. IT WAS IN ORDER TO MEET THIS PROBLEM AND THE NEED FOR SOME LEGAL TIDYING UP ON OUR SIDE THAT WE

PUT FORWARD OUR PROPOSALS. WE WERE STILL FACING A PROBLEM WHICH

WOULD BECOME MORE ACUTE AS TIME WENT ON, BOTH SIDES HAD AN

INTEREST IN THE CONTINUING PROSPERITY OF HONG KONG. DID-

THE CHINESE GOVERNMENT CONSIDER THAT ANY OTHER MEASURES MIGHT

BE TAKEN THAT WERE NOT UNNECESSARY AND INAPPROPRIATE**

AND COULD MR SONG EXPAND ON THE REASONS FOR THE CHINESE

GOVERNMENT'S OBJECTIONS?

3. SONG REPLIED THAT THE GIST OF THE CHINESE POSITION WAS

IN THE MEMORANDUM. CHINA AND BRITAIN BOTH SUPPORTED THE

PROSPERITY AND FURTHER DEVELOPMENT UC HONG KONG. THE CHINESE

GOVERNMENT HAD GIVEN CONSIDERATION TO THE MEASURES THAT WE PROPOSED TO MAINTAIN CONFIDENCE, BUT TOOK THE VIEW THAT, SO LONG AS BOTH SIDES COOPERATED, CONFIDENCE COULD BE MAINTAINED.

SECRET

THE.

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