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19 NSVORET

INDEX

Mr Murray

V

.PS in Blaker Williansion 1

₤16/11

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PA 8.16.1. Thank

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Taken

HONG KONG: NEW TERRITORIES LEASES

1.

у-

H

16/11

Mr Blaker may be interested to see the attached record

of a conversation on 1 November between the Governor of Hong Kong

and the Senior Director of the Hong Kong NCNA Office, Mr Wang

Kuang. This is one of the most revealing indications we have

received of how the Chinese perceive the problems which the

New Territories Leases issue poses for them.

2.

In forwarding the record, Dr Wilson, the Governor's

Political Adviser, commented that Mr Wang's warning about the possible repercussions of seeking any solution at the moment

Dr Wilson went on: appeared to be spoken from the heart.

3.

"Although his remarks about waiting for equalisation

of standards of living before making a move may be

unrealistic, he clearly felt that, for the time being,

there are insuperable political difficulties in making

progress over the leases. We got the impression that he was advising us to wait until the political and economic

scene in China, and in Guangdong in particular, had

stabilised further."

This clearly confirms that we should not be thinking of taking any new initiative on the leases problem in the immediate future (though we should use any natural opportunity that arises

to remind the Chinese of our concern).

But when the time does

SECRET

/come

7

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