CODE 18-77

RESTRICTED

HKK 040/1

Reference..

(9.7

Mr Clift

THE FUTURE OF HONG KONG

1.

HKK 04 oli

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RECEIVED BETTY NO. 51 - 2 OCT 1980

DESK ORA TAUEX

REMISTRY

Suction Taka

You asked what public statements were made on the future of Hong Kong following the visit of Hua Guofenglin October/November 1979.

(a) In a written reply (8 November 1979) to the request by

Mr Robert Parry MP for a statement on the Hua visit, the Prime Minister said concerning Hong Kong:

'We agreed that we had a mutual interest in the stability

and prosperity of Hong Kong, and Premier Hua gave assurances that immigration from China would be reduced.'

(b) In a reply (9 November) to a letter from Christopher

Patten MP on refugees, the Prime Minister said:

'It is understandable that people in Hong Kong should be wondering whether the time has yet come for us to start discussions with the Chinese authorities over the territory's future. The Chinese Government, however, have made it clear on more than one occasion that they believe it is still too soon to consider Hong Kong's future in any detail. This was clearly implied by the Chinese Foreign Minister during his press conference here in London last Friday.

At the same time, the Chinese authorities are aware of the need to reasure investors that their interest will be fully taken into account when the time does come to consider Hong Kong's future. They have made a number of statements to this effect this year, and Premier Hua Guofeng touched on the subject during our discussions last week. The important thing at this stage is that Britain and China have a mutual interest in maintaining Hong Kong's current prosperity and stability.'

(c) In a written reply (4 December 1979) to a question from

Mr Parry on whether the New Territories lease was discussed with Hua, the Prime Minister said:

'There was no discussion of the New Territories lease as such, but the subject of Hong Kong's future was touched on. Both sides agreed that we shared an interest in maintaining the stability and prosperity of the territory. We agreed to keep in contact on the subject.'

(d) To a further question by Mr Parry (4 December) on whether the matter of Hong Kong's sovereignty had been discussed, the Prime Minister replied + 'No'.

A W Friar

19 September 1980

Hong Kong and General Department

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