NIO VW SIHL NI NELLIVM 38 01 ONIHLON

ไป

CONFIDENTIAL

2.

(Chi P'eng-fei) visited London.

During talks

with Sir Alec Douglas-Home on 7 June he said "the status of Hong Kong was not in question. That was a matter for the future".

38.

In private conversation too, Chinese officials

have expressed views clearly designed to bolster confidence in a continuing status quo. Reference haa been made to the significance of the year 1997, but even this date, it is suggested, may not herald any Chinese demands for the return of Hong Kong. An official thought to be Li Zhusheng (Li Chu-sheng)7 of the Hong Kong branch of the New China News Agency (the office of the Chinese Government's unofficial representation in Hong Kong) is reported to have at a private dinner

said/in September 1975 that even though the CFG did not recognise the Sentulles between Britain and China

19th

Century

treaties

they would have regard to the date 1997. Business investments would be absolutely safe until at least that year provided that there was no world war; that the Hong Kong Government prevented any significent Russian penetration of the territory; that the Portuguese did not give up Macao, and that Britain wanted to keep Hong Kong. Even when 1997 arrived, it was not certain that China would wish to regain control of Hong Kong immediately. Much would depend upon the precise situation obtaining at that time, but if China did decide to recover Hong Kong, it would be by negotiation with the British Governmenu. Asked whether there was any difference between Hong Kong and the New Territories, the official replied that since Hong Kong would clearly not be viable without the New Territories, Britain (and by implication China) would be unlikely to negotiate a separate settlement for only part of the territory. The Chinese Government would take into account the differing lease terms which had been issued by the authorities in Hong Kong.

Despite

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