DRAFT
SECRET
DSR 11C
SECRETARY OF STATE'S VISIT TO CHINA:
FUTURE OF HONG KONG
SUPPLEMENTARY BRIEF ON LEASES IN THE NEW TERRITORIES
Points to Make
1.
As in paragraph 3 of the 'Points to Make' of the
main brief.
BAULLE KALI in Lake walýza,
2.
as to
Will tackle this problem in low-key fashion so as
avoid speculation, but already much public discussion in
Hong Kong andBritish press.
Essential, however, to keep
content of our discussions confidential. But will need to
say something to thepress after Secretary of State's visit.
We suggest the follows:
'We talked of Hong Kong, and in particular how
important it is that there should be continuing
and expanding cooperation in the economic field to
the mutual advantage of China and of Hong Kong.
It is clear that Hong Kong has a role to play in
the context of China's policy of the 'four
modernisations'.'
[If the Secretary of State has been able to encourage
Vice Premier Deng to build on his 'hearts at ease' assurance
of last year, we might add:
3.
'We talked of the longer term too and importantly
I was told that the statement made last year to
the Governor of Hong Kong that 'investors should
put their hearts at ease' applied to leaseholders
in Hong Kong as well as intending investors'. 1
We have examined ways in which leases might be
granted in the New Territories which would not
necessarily come to an end in 1997. It would obviously
he helpful if the first lease were in favour of a
SECRET
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