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4. DENG ADVISED LORD CARRINGTON TO STUDY CHINA'S POLICIES TOWARDS TAIWAN WHEN CONSIDERING HONG KONG. A SOLUTION OF THE TAIWAN ISSUE WOULD HAVE TO BE BASED ON THE FOLLOWING CONDITIONS. IT WAS NOT CHINA'S INTENTION TO CHANGE TAIWAN'S WAY OF LIFE OR POLITICAL SYSTEM: NOR WOULD THE INCOMES OF THE PEOPLE BE REDUCED. TO A CERTAIN EXTENT, THEY WOULD EVEN BE ALLOWED THEIR OWN SELF- DEFENCE FORCE. HOWEVER, THE CLAIM TO STATEHOOD AND THE FLAG WOULD HAVE TO BE GIVEN UP. THIS WAS NOT AN ''EXPEDIENT''
POLICY BUT A LONG-TERM ONE.
5. ALL THIS REFLECTED CHINA'S POLICY IN HANDLING MATTERS OF A SIMILAR NATURE. THIS HAD EVEN APPLIED TO TIBET. THE CHINESE GOVERNMENT HAD ONCE DONE A DEAL WITH THE DALAI LAMA. THEY HAD PROMISED, FOR A LONG PERIOD TO COME, NOT TO MAKE ANY REFORMS IN TIBET. THEY HAD KEPT THEIR PROMISE. THEY HAD DONE EXACTLY WHAT THEY HAD SAID THEY WOULD DO. IT WAS ONLY WHEN THE DALAI LAMA BETRAYED HIS COUNTRY AND RAN AWAY THAT THEY HAD STARTED THE REFORMS. HE COULD SAY DEFINITELY THAT, IF THE DALAI LAMA HAD NOT RUN AWAY IN 1959, THERE WOULD HAVE BEEN NO REFORM EVEN UP TO THE PRESENT TIME IN TIBET. THIS HAD BEEN THE POLICY OF CHAIRMAN MAO AND REMAINED THE CHINESE POLICY. THE CHINESE GOVERNMENT DID NOT SHOW BAD FAITH.
6. DENG SAID THE BRITISH GOVERNMENT SHOULD THEREFORE TELL INVESTORS IN HONG KONG THAT THEY COULD SET THEIR MINDS AT EASE. AS FOR OTHER ASPECTS, HE COULD NOT SAY MUCH. WE SHOULD ALSO BEAR IN MIND THAT CHINA HAD ONE THOUSAND MILLION PEOPLE.
7. LORR CARRINGTON SAID THAT THE BRITISH GOVERNMENT DID NOT NEED TO BE CONVINCED OF THE AUTHORITY WITH WHICH THE VICE-CHAIRMAN SPOKE, OR OF HIS ASSURANCES. HOWEVER, THE PROBLEM WHICH HE HAD DESCRIBED CONCERNED THE NEBULOUS MATTER OF PUBLIC OPINION. HE WOULD ONLY ASK THE CHINESE GOVERNMENT TO WATCH THE STATE OF PUBLIC OPINION IN HONG KONG VERY CAREFULLY IN THE NEXT YEAR OR TWO. DENG SAID THAT HE WAS AWARE OF THIS. HE COULD NOT SAY MORE THAN HE HAD ALREADY SAID. HE THEN BROUGHT THE CONVERSATION ON
THIS SUBJECT FIRMLY TO A CLOSE.
CRADOCK
LIMITED
HD/HK & GD HD/FED PS
PS/MR BLAKER SIR E YOUDE
MR DONALD
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