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Future of Hong Kong : Conversation in Peking
Sir Y.K. Kan/Liu Sheng Shih in Mid-
Sir Y.K. Kan has just paid a private visit to Peking. He has an indirect interest in a catering contract for CAAC via the Bank of East Asia and the Hong Kong Caterer who is a relation (Mr James Wu of Maxims). CAAC invited them all to Peking to celebrate a year's successful operations.
To his surprise on arrival he found himself a guest of the Government, housed in a Government guest house etc.
Liao Cheria Ti
Liu Sheng Shih gave a dinner for him in the Great Hall and sat next to him. They spoke about the situation in Hong Kong and Kan said that if u wanted to speak more he would be in Peking for a few days more and left it at that. In the event, two days later and rather suddenly, Liu turned up at the guest house and they spoke for about an hour alone (in Cantonese).
From his account I gather Sir Y.K. spoke well to his brief. He referred to our meeting with Deng and Liu 2 years ago, to Deng's references to industrialisation of Guangdong, to my subsequent appointment of him to head liaison with the Guangdong Government to further this, to the meetings that had been held and the quite dramatic expansion that had taken place.
He then referred to the very adequate assurances about the intentions of the Chinese Government given by Deng, to their satisfactory nature in themselves, but to the counter-action of the terminal date written in to British law. The latter had little effect at the moment but sometime 'not this year, perhaps next year, but at any rate fairly soon thereafter' the effect would make itself felt probably starting with international firms, but many Hong Kong firms would follow suit etc. He said this was the position as he saw it. He made no suggestion for a solution.
Liso
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Liu replied that Deng had stated the position of the Chinese Government to Lord Carrington, and also asked him to note the Chinese position over Taiwan. However the problem put by Sir Y.K. was very well understood by the Chinese Government and would be considered (I
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