SECRET.
FUTURE OF HONG KONG ESSENTIAL FACTS
UK OBJECTIVES ON HONG KONG
1. To obtain from Chinese more specific acknowledgement that
present prosperity of Hong Kong with its value to Chinese will not
continue very much longer unless concrete measures are taken about
.P
its future. Such a measure could be something on land leases in
New Territories.
CHINESE ATTITUDES
2
Present Chinese Government do not recognise 19th century
Treaties establishing British administration in Hong Kong. But
Hong Kong is valuable to them (between one-third and one-half of
China's foreign exchange is earned through Hong Kong).
2. Chinese have made general statements about maintenance of the
status quo and the prosperity of Hong Kong. Vice Chairman Deng Xiaoping
asked the Governor in March 1979 to tell investors in Hong Kong to
'put their hearts at ease' but could not guarantee that political
situation of Hong Kong would remain unchanged. (Text at Annex B).
Hua Guofeng agreed with the Prime Minister in November 1979 that
we should keep in touch on the matter.
4. In May 1980, Deng Xiaoping's assurance was reaffirmed by
Vice Premier Gu Mu during visit to China of Hong Kong's Financial
Secretary. But he was not specific about future.
Referred to
Hong Kong's continuing 'as a capitalist society', but said that the
time was not yet ripe to make concrete proposals.
Claimed that
the Chinese Government would find solution in accordance with
principles laid down by Vice Chairman Deng.
SECRET
/LAND LEASES