Mr Donald

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CHINESE ATTITUDE TOWARDS THE FUTURE OF HONG KONG: HEI OF SUN HUNG KAI SECURITIES LTD

1.

2.

You will wish to see Dr Wilson's

VIEWS OF MR FUNG KING

letter of 23 February attached.

It is not, I suppose, out of the question that the Chinese would make warning off noises through an intermediary if they were likely to be embarrassed by our raising land leases and the future when the Secretary of State is in Peking next month. But we shall see what reactions HM Embassy get when they discuss the agenda with the Foreign Ministry. However, I share Dr Wilson's doubts that this is the case. Nevertheless, Mr Fung's report supports the general view from Hong Kong that any over robust moves by us on the future would be unwelcome in Peking.

2 March 1981

cc:

Mr McLaren FED

F. Morrice

P Morrice

Hong Kong & General Department 233 3184

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