SECRET

reverted to its former posture and China, while never abandoning its claim, has not brought the matter to a point of confrontation.

Comment

6.

/chinese

It is probably fair to say that China's claim to Hong Kong, Kowloon and the New Territories is based primarily on moral arguments. It may be that they/will expect Britain to recognise the moral appeal of their position and would prefer us to make a spontaneous abdication of sovereignty over Hong Kong, rather than for them to propose a statement implying our recognition of their claim.

27 June 1980

SECRET

S. Pares

S Pares

Far East Section

Research Department

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