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ESSENTIAL FACTS
UK Objectives on Hong Kong
1. To obtain from Chinese more specific assurances, preferably
usable in public, on their attitude to Kong Kong, particularly on
question of land leases in New Territories and, if appropriate,
to lead towards official talks on the latter question.
Chinese attitudes
2.
Present Chinese Government do not recognise 19th century
treaties establishing British administration in Hong Kong. But
Hong Kong is valuable to them (between one-third and one-half of
China's foreign exchange is earned through Hong Kong).
3.
Chinese have made general statements about maintenance of
the status quo and the prosperity of Hong Kong (Vice Premier Deng
Xiaoping asked the Governor in March 1979 to tell investors in
Hong Kong to 'put their hearts at ease'); but they have not clearly
indicated their views on the long-term future. Hua Guofeng agreed
with the Prime Minister in November 1979 that we should keep in
touch on the matter.
4. In May 1980 Deng Xiaoping's assurance was reaffirmed by
Vice Premier Gu Mu during the visit to China of Hong Kong's
Financial Secretary. But he was not specific about the future.
He referred to Hong Kong's continuing 'as a capitalist society', but
said that the time was not yet ripe to make concrete proposals.
He claimed that the Chinese Government would find a solution in
accordance with the principles laid down by Vice Premier Deng.
Land Leases in New Territories
5. The most pressing issue is that of the leases in the New
At present, all land leases in the New Territories
Territories.
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