XXMPMHOKOP
MPBYS
Hkk 026/14
RECEIVED IN REGISTRY..
No
5 JAN 1982
LAK OFFICER
HOFO 013/24
PA
८१६
5/1/02
D/157
GR03562
Lite Dish + Guangdon ADVANCE COM
IMMEDIATE
35
*D].
Hoy FED DOT (2)
*
句
00 DO I
DESKBY 240900Z
00 F C O
GRS 90
Hd/NED
нанкет
PS/He 10 DS
RC
Hd/TRED Ps PS/GPS
4-12
PS/PUS
Sur & Youde
CONFIDENTIAL
DESKBY 240900Z
FM B T C HONG KONG 240345Z DEC 81
TO IMMEDIATE DOI
Mr. Govelison
TELEGRAM NUMBER INDUS 191 OF 24 DECEMBER
INFO IMMEDIATE FCO
INFO SAVING PEKING
Nie
HKK 164/1
MY INDUS 183 AND 189. PRIME MINISTER'S VISIT.
WP HAR 106||
KADOORIE HAS JUST SENT ME LETTERS TO THE PRIME MINISTER AND LORD WEINSTOCK FOLLOWING THE DEVELOPMENTS ON THE GUANGDONG PROJECT REPORTED IN MYTELS INDUS 187 AND 188. SEE MIFTS FOR TEXTS. ORIGINALS PLUS A FURTHER PERSONAL LETTER TO THE PRIME MINISTER EXTENDING THE INVITATION TO HER HUSBAND FOLLOW BY BAG LEAVING HERE
ON 28 DECEMBER ADDRESSED TO HAVELOCK.
2. YOU WILL NOTE THE FIRM RE-STATEMENT OF KADOORIE'S OPPOSITION
TO A UK/WESTINGHOUSE/BECHTEL NUCLEAR ISLAND.
MARCH
NNNN
}
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Poos O
Olidine! at:
MIK 040/1
The Copy for:
SECRET
Information only / Action on
Para(s)
Mr McQuade
Mr Williamson
SECRET
INDEX
HKK 026/14
31 DEC 1961
Reference....
|| 13 | 124, AF3 ||12|
24
Orginal an Infure of
th file.
25/301.2.
PRIME MINISTER'S VISIT TO CHINA, HONG KONG AND JAPAN AND
THE FUTURE OF HONG KONG
23
1. Mr Coles' letter of 23 December gives the Prime Minister's agreement in principle to visiting China, Hong Kong and Japan in the second half of September 1982. CACTION Please discuss with FED and ensure that the briefs for the LPS are suitably annotated.)
Done. annotatin needed LPS & T Donald
areaurade
of the PM's position.
31/12
CODE 18.77
ди
file
"fin
The Prime Minister also agrees that on the Hong Kong problem Lord Carrington should let her have further thoughts in due course. No 10 think that this should be done by a personal minute rather than an OD paper. I have discussed with Sir E Youde who wishes us to submit after the LPS's visit to China/Hong Kong putting up a draft minute from the Secretary of State to the Prime Minister and allowing for the possibility of discussion between Mrs Thatcher, Lord Carrington and Mr Atkins.
3.
NR
A new element will need to be injected into the argumentation in the minute on the future. This is the somewhat unclear proposal related by Sir Y K Pao for a deal between China and the UK involving soft credit of about $1 billion and substantial export credits. Mr Coles' letter of 18 December implies that the Chinese may have been thinking of some kind of link between such a deal and the Hong Kong problem although Sir Y K was clearly not very explicit on this subject. Indeed the Prime Minister told Sir E Youde yesterday that she was not clear whether the Chinese had in fact made any such link or whther it was Sir Y K's own idea.
4.
In the draft minute from the Secretary of State we shall need to argue out, in consultation with FED, whether some kind of economic assistance to China on these lines could provide an extra lever which would help in getting a solution to the Hong Kong problem. Sir E Youde's initial reaction is that this would be unlikely if it were simply a matter of the straight provision of cash by the UK to China. It is by no means sure that the Chinese would be prepared to make concessions to us on Hong Kong simply in return for financial favours. It would probably therefore be important to look at the idea of soft credit very much on its commercial merits (what contracts might we get in return?) as well as in the context of our relations with China (this is for FED to advise).
5.
However the idea of some kind of economic lever to help over Hong Kong should not be ruled out. It just might become a more credible idea if it were linked with a project involving cooperation between Hong Kong and China. The Guangdong Nuclear Project is the obvious possibility. Ministers will in any case be under quite strong pressure from Kadoorie and others to offer favourable terms for the supply of equipment for the Nuclear Power Station if it comes off.
6. We should start work on the submission immediately after we
/get
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