SECRET
LORD CARRINGTON'S MEETING WITH THE GOVERNOR OF HONG KONG
ESSENTIAL FACTS
THE FUTURE OF HONG KONG
1.
Lord Carrington outlined problem of confidence in Hong Kong
to Vice-Chairman Deng Xiaoping in April 1981. Deng reiterated,
but did not expand on, the assurances made to the Governor in 1979.
He made it clear that China had no more to say at present on her
intentions over Hong Kong.
2.
HM Ambassador in Peking subsequently covered this ground again
with Ke Hua (Ambassador in London) at the latter's request. If
discussions are followed up this may contribute to Chinese under-
standing of problem. But no indication that leadership yet ready
to tackle the issue in more concrete form. Meanwhile, 'the 1997
problem' is attracting more concern in Hong Kong. There was some
disappointment that more did not come out of the Secretary of
State's visit to Peking and although confidence has since recovered
(especially on the stock market) we have to be prepared for a
possible slide (leading even to a run on the Hong Kong dollar).
A paper is therefore being prepared to cover possible action in such a
slide of confidence or to be ready whenever the Chinese are prepared
to discuss the problems.
there are no major
points of difference on this between the department, the Governor
and Peking.
3.
This is now in hand
Ma
The Governor may ask that the visit of the Prime Minister to
China, now projected for 1982, be put back to 1983 to give the
Chinese plenty of time to consider the problem. Firm dates have
not been made for the visit but at present the likely slot is
/from
SECRET