"
PP HONG KONG
GRS 480
SECRET
FM FCO 211735Z DEC 81
TO PRIORITY HONG KONG
TELEGRAM NUMBER 975 OF 21 DEC
SECRET
42170
1
HKK 040
RECEIVED IN RECREERY #G. '51
1 DEC 1981
DESK OFFICER
INDEX
*A
आल
Acuns Taken
311.2/ Af-31/12
AND TO PRIORITY PEKING (PERSONAL FOR AMBASSADOR)
PERSONAL FOR GOVERNOR AND POLITICAL ADVISER FROM CLIFT
MIPT
LINE WITH CHINESE LEADERS
1. RECALL LORD CARRINGTON'S DISCUSSION WITH CHINESE LEADERS IN
APRIL. GLAD RELATIONS OVER HONG KONG ARE SO GOOD. VALUE
PRACTICAL COOPERATION WITH GUANGDONG.
2.
AS LORD CARRINGTON EXPLAINED, WE FACE A LEGAL PROBLEM OVER
1997. THE FUTURE IS A SUBJECT OF GROWING DISCUSSION IN HONG KONG
AND UNCERTAINTY IS BOUND TO AFFECT CONFIDENCE. WE HAVE A COMMON
INTEREST IN BOLSTERING CONFIDENCE AND WOULD BE GRATEFUL FOR ANY
VIEWS THE CHINESE MAY HAVE ON WAYS OF DOING THIS.
3. (DEPENDING ON CHINESE RESPONSE) CONCERN OVER THE FUTURE IS
GROWING. CHINESE ASSURANCES HAVE BEEN OF GREAT VALUE.
BUT THE LEGAL AND OTHER PROBLEMS RELATING TO 1997 REMAIN.
LOCAL AND OVERSEAS INVESTORS (INCLUDING LAWYERS AND ACCOUNTANTS) ARE
PARTICULARLY INTERESTED IN ENSURING CONTINUING STABILITY
IN MATTERS AFFECTING HONG KONG. SHOULD AIM TO ACHIEVE
THIS WITHOUT PREJUDICING CHINA'S POSITION ON HONG KONG. OTHER-
WISE COULD BE RAPID DISPERSAL OF CAPITAL AND INDUSTRIAL RESOURCES
OF HONG KONG WITHIN NEXT FEW YEARS.
(PROVIDED THAT PRIME MINISTER'S VISIT HAS BEEN AGREED)
THERE WILL BE A FURTHER OPPORTUNITY FOR DISCUSSION OF THE
QUESTION WHEN THE PM VISITS PEKING.
5. (IF CHINESE REPEAT ASSURANCES) WE ACCEPT THESE. PROBLEM IS
THAT PUBLIC OPINION AND INVESTORS IN HONG KONG MAY NOT, WHILE
FACED WITH UNCERTAINTY ABOUT FUTURE LEGAL ARRANGEMENTS.
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SECRET
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