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RECEIVED IN REGISTRY NO. 51

In:RECORD CONVERSATION BETWEEN THE SECRETARY of 30 TH980 Para AND THE CHINESE FOREIGN MINISTER AT 1 CARLTON GARDENS, ON

TUESDAY 1 OCTOBER 1980 AT 2.30 pm

DESK

INDEX

REGISTRY Action Taken

PRESENT

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AW 14/15

Secretary of State

Sir E Youde

Mr A E Donald

Mr G G H Walden

Mr R JT McLaren

Vice-Premier Huang Hua

HE Mr Ke Hua, Chinese Ambassador

Mr Ding Ming, MFA Peking

Mr Qiu Kean, Chinese Embassy Mr Li Chuansheng, Chinese Embassy

ILLEGAL IMMIGRATION

1.

Lord Carrington said that over 400 illegal immigrants a day were now reaching Hong Kong. The situation was so serious that Hong Kong were planning to send back to China those who were successful in reaching the urban areas and had previously been allowed to stay. Chinese co-operation would be needed if this policy was to work; in particular, they would have to tighten up at the border. Huang Hua noted that the Chinese government had already taken a number of steps in this direction. Lord Carrington said that Sir M MacLehose looked forward to discussing the matter with Governor Xi of Guangdong shortly.

NEW TERRITORIES LEASES

2.

Lord Carrington said that there was beginning to be some concern about the question of maintaining the confidence of investors in Hong Kong. The problem was not immediate but would become so within 2 years. Agreement would have to be reached on what should be done about land leases in the New Territories. This was a separate matter from the more general question of the future of Hong Kong but there was of course a connection. The Chinese government had made some reassuring statements which had helped to boost confidence. But there was a need to consider the modalities of the leases question; otherwise investors would not put their money into Hong Kong. Perhaps our Ambassador in Peking could take up the matter with the Chinese authorities in due course. Sir E Youde said that the Governor of Hong Kong would like both sides to reflect on the problem for a few months and then consider how best to deal with it.

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Huang Hua said that the two sides had already exchanged views on this problem. The British government had proposed a solution involving leases without a terminal date. Chinese government had studied the idea and had seen difficulties in it. Vice-Premier Deng Xiaoping had told the Governor that China would not do anything which would adversely affect the interests of investors. That had been an authoritative statement of the Chinese position; the Chinese

SECRET

/government

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