DRAFT
ESSENTIAL FACTS
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DSR 11C
UK Objectives on Hong Kong
1. To obtain from Chinese more specific assurances, preferably usable in public, on their attitude to Hong Kong, particularly on question of land leases in New Territories and, if appropriate, to lead towards official talks on the
latter question.
Chinese Attitudes
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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).
3.
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 the political situation
of Hong Kong would remain unchanged. (Text at Annex A)
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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 the visit to China of Hong Kong's Financial Secretary.
But he was not specific
about the future. He referred to Hong Kong's continuing 'as a capitalist society', but said that the time was not yet ripe to make concrete proposals. He claimed that the Chinese Government would find a solution in accordance wit the principles laid down by Vice Chairman Deng.
Land Leases in New Territories
5.
The most pressing issue is that of the leases in the
/Territories
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