Hong Kong

CONFIDENTIAL

13.

DSR 11C

23. The Prime Minister then invited the Secretary of

State for Foreign and Commonwealth Affairs to make a

further point about Hong Kong. Lord Carrington said

that

that Premier Hua would remember, or (if he did not),

Minister of Foreign Affairs Huang Hua would remember,

when the Governor of Hong Kong had visited China, he had

raised the question of the New Territories leases.

problem was that, as 1997 approached, uncertainty about

The

new leases grew.

The Governor had later made some

proposals, which the Chinese Government had found

unacceptable.

The British Government would not pursue

these, since any proposals had to be acceptable to both

sides. But he would be grateful if Premier Hua could

give thought, or cause thought to be given, to the

problem of maintaining confidence in Hong Kong's future.

It was not in the interests of China, or of Hong Kong, tha

uncertainties about this should put the future of Hong

Kong into jeopardy, and affect investment confidence there

The Prime Minister said that the British Government

did not expect an answer on the spot, but were asking

the Chinese Government to give thought to the question.

24.

Premier Hua replied that the Chinese Government had given serious thought to this question, and had given

their reply to the British Government. They had to

be very careful about what was said about Chinese

territory.

On the other hand, the Chinese Government

had very good relations with the British Government,

At his and with the British authorities in Hong Kong.

press conference before his departure from China for

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