CONFIDENTIAL
SECRETARY OF STATE'S BRIEFING FOR MR PETER SHORE MP: 15.45 ON 14 MAY 1981
FUTURE OF HONG KONG
POINTS TO MAKE
Confidence in Hong Kong holding, but volatile.
Always risk as time
1.
goes on that market will slide.
ies.
2. Part of problem is shortening period of land leases in New Territor-
Governor cannot grant leases there that would terminate after 1997.
3. Need to find answer acceptable to Chinese and good enough for
Hong Kong and international business community. Raised with Deng but
he would not be drawn on specifics.
4.
Chinese nevertheless appreciate value of maintaining status quo in
Hong Kong, and conscious of confidence problem. Deng strengthened past
assurances that, whatever future of Hong Kong, investors would have
nothing to fear. It was clear that there was no prospect of getting
the Chinese to go any further on this occasion. Indeed, they had warned
us of this in advance by briefing the press shortly before my arrival.
5. Assurances satisfactory so far as they go. But more specific
guarantees needed in next few years.
CONFIDENTIAL