CONFIDENTIAL
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CGISTRY NO. 51
15 OCT 1981
PA
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REGISTRY
Action Takan
850711
1. I think the Lord Privy Seal might be Interested in the attached report from the Political Adviser in Hong Kong.
13.18
2. Liao Chengzhi has long been concerned with relations between China and Hong Kong and is at present a Vice Chairman of the Standing Committee of the National People's Congress (ie the Chinese Parliament) and Minister in the Overseas Chinese Affairs Office in Peking.
3. The fact that Liao was willing to commit his thoughts to a tape recorder is unusual. The message is clearly an encouraging one in relation to the future of Hong Kong but I am not surprised that no Chinese Minister is prepared to say anything beyond what Deng Xiao Ping has told Lord Carrington.
4.
I agree that it is a dangerous idea that profits from land sales in Hong Kong come straight to the British Treasury. We will try to ensure that this point is covered in the briefing for the Lord Privy Seal if the China visit comes off this autumn.
Antonald
A E Donald
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13 October 1981
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CONFIDENTIAL