GR 355
SECRET
FM HONG KONG 290952Z SEP
SECRET
AKKOHO!!
ON
оно
WO.51
1 CCT 1980
CER
PA
2.00
TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE, M:
TELEGRAM NUMBER 1262 OF 29 SEPTEMBER, 1182.
REGISTRY Action Tou
M IP T: SCENARIO FOR SECRETARY OF STATE'S TALK WITH HUANG HUA
(A) S OF S: NOTED REMARKS OF DENG XIAOPING, HUA GUOFENG AND GU MU ETC ABOUT HONG KONG, BUT GRATEFUL IF HUANG HUA WILL RESTATE CHINESE
POSITION ON HONG KONG AND ITS FUTURE.
(B) HUANG HUA: REPLIES ALONG THE LINES OF DENG AND GU, 1.E. HONG PART OF CHINA BUT NO HURRY ABOUT CHANGING PRESENT ARRANGEMENTS WHICH COULD GO ON FOR SOME TIME. IN ANY CASE INTERESTS OF
INVESTORS WILL BE RESPECTED.
(C) S OF S: SO YOU HAVE NO WISH TO CHANGE THINGS IN HONG KONG IN THE IMMEDIATE FUTURE. IS THIS RIGHT?
(D) HUANG HUA: YES, BUT HONG KONG, MUST REVERT TO CHINA SOMETIME. DO NOT EXCLUDE POSSIBILITY OF POLITICAL CHANGE, BUT NO IMMEDIATE PLANS.
(E) S OF S: IF YOU WISH TO DEFER SETTLEMENT OF THE LONG-TERM PROBLEM I AGREE, SINCE IT WOULD BE DELICATE AND DIFFICULT. THEREFORE SHORT-TERM OBJECTIVE TO MAINTAIN HONG KONG'S PROSPERITY AND STABILITY MEANWHILE. WATER, ELECTRICITY AND FINANCING A NEW AIRPORT ARE OBVIOUS EXAMPLES, AND GOOD PROGRESS HAS BEEN MADE ON THE FIRST TWO. BUT KEY ISSUE IS HOW TO MAINTAIN WILLINGNESS OF PEOPLE TO INVEST IN THE NEW TERRITORIES. WAY MUST BE FOUND TO GIVE THEM RIGHTS TO PROPERTY WHICH COULD CONTINUE BEYOND 1997 WITHOUT PREJUDICING CHINA-S BASIC POSITION. THIS ISSUE WILL BE CRITICAL FROM MID-'82 SINCE 15 YEARS IS STANDARD MORTGAGE, SO ARRANGEMENTS ARE DESIRABLE BY THE END OF 1981. SUGGEST A STEP-BY- STEP APPROACH ON THESE TECHNICAL ISSUES: THEY SHOULD BE DEALT WITH AS THEY COME UP. ISSUES THAT CANNOT BE SETTLED IN HONG KONG
SHOULD BE REFERRED TO PEKING.
SQUARE BRACKETS BEGIN IF HUANG HUA CONCURS SQUARE BRACKETS END
CHANGE THE SUBJECT.
SQUARE BRACKETS BEGIN IF HUANG HUA COMMENTS ON THE ISSUES END
SQUARE BRACKETS NOTE AND SAY THERE IS TIME FOR THOUGHT AND WILL
BE IN TOUCH.
SQUARE BRACKETS BEGIN IF HUANG HUA SAYS THAT THE LONG-TERM
AND SHORT-TERM PROBLEMS CANNOT BE CONSIDERED SEPARATELY END
SQUARE BRACKETS WE SHOULD BOTH REFLECT FAIRLY URGENTLY, SINCE
THE SHORT TERM TECHNICAL MATTERS CANNOT BE PUT OFF FOR LONG.
GRATEFUL IF THE CHINESE WOULD MAKE SPECIFIC PROPOSALS.
(13
MACLEHOSE
LIMITED
FED
HHAND
PS/MR BLAKER
PS PUS SIR.E. YOUDE MR DONALD
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