PERSONAL AND CONFIDENTIAL

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HKK 026/2

RECY IN LEOSTRY NO. 51

CALL BY SIR Y K PAO ON THE FOREIGN

AT GOVERNMENT HOUSE: 30 MARCH 1981

1.3 APR 1981

Copyh PS

Sent

9/4

62A

AND "COMMONWEALTH SECRETARY

"FICER

A

HEMISTRY

tion Taken

12.4 Sir Y K Pao paid a courtesy call for half an hour on

The following subjects came up: -

Lord Carrington.

(a)

Japan: Lord Carrington asked for Sir Y K's views on the internal politics of Japan. Sir Y K replied

Sve

See also

HICK 02016

16

in fairly orthodox terms. He saw Mr Suzuki very much as a figurehead, with the major centres of power located in the Tanaka and Fakuda factions.

(b)

China: Brief discussion on internal developments in China.

(c) Sino/American Relations: Sir Y K Pao had seen ex- President Ford after his visit to Peking, and thought that the trip had only been moderately successful. He had been in Washington for the Presidential inauguration and had formed the impression that the President was strongly attached to Taiwan, Vice-President Bush equivocal, and Mr Alexander Haig firm in his intention to develop a sensible relationship with the PRC.

Sir Y K

(d) Future of Hong Kong: /thought it essential to get away from the artificial deadline established by the expiry of

the lease in 1997. The Chinese Government had not formally

acknowledged the lease. It followed that it would be

very difficult or impossible for them to renew it. Sir Y K did not, in fact, think that confidence in Hong Kong depended

on a formal arrangement to extend British tenure. The fact was that, with or without the lease, the Chinese could move against Hong Kong at any time. Confidence was therefore based

on other factors, such as the sound working relationship

now established with the PRC. By the same token, it should be possible to extend it into the future.

(e) Law and Order: Sir Y K Pao claimed that law and order

had deteriorated markedly in Hong Kong. He thought that the Royal Hong Kong Police were under-staffed.

30 March 1981

ccs:-

RgL

Hong Kong and General Dept, FCO (to enter)

Sir E Youde

Mr Donald PS/Governor

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