Summary record of a conversation during lunch at Government House on 9 April 1981
122)
Present:
Mr Wang Kuang, First Director,
NCNA
Mr Li Jusheng, Second
Director, NCNA
Mr Li Ruohe, Interpreter
HE the Governor
Sir E Youde
the Chier' Secretary
the Financial Secretary
the Political Adviser
Mr Y P Cheng, Interpreter
At the Governor's invitation Sir E Youde gave brief details of the conversations Lord Carrington had in Peking. He said there had been meetings with Zhao Ziyang, Huang Hua and Deng Xiaoping. In the discussions with Deng they had spoken at length about the world situation and then turned to bilateral matters which included Hong Kong.
2.
In speaking to both Huang and Deng, Lord Carrington had said that we appreciated the assurances to investors given by Deng. Those were entirely satisfactory. There were however problems created by British jaw. These affected such things as mortgages and land leases. In turn these problems would affect the confidence of investors. Lord Carrington had said we had no specific proposals to put forward but he thought the Chinese should be aware of these difficulties. Just before the meeting with Deng, the latter had repeated his assurances publicly to a group of journalists. Sir E Youde was sure the intention was to have these repeated widely in Hong Kong and elsewhere. Lord Carrington had told Deng that these assurances were fully accepted by IIMG. Nevertheless, the problems of the effects of the restraints of British law remained and would undoubtedly affect confidence.
3.
Deng had repeated his assurances, saying that these were made with the full authority of the Chinese Government. He had then gone on to say that, in considering Hong Kong, the British should look at Chinese policy towards Taiwan. Lord Carrington had repeated that the British Government fully accepted Deng's assurances and the authority with which they were given. If it were only a matter between the two governments all would be well. But others were involved and
the question of confidence was important.
4.
After getting confirmation from Wang Kuang that he had heard of the conversations although not in such detail, the Governor asked Wang to explain the reference to Taiwan. After some hesitation, Wang, and then Li ., said that the
SECRET
/contd.