CONFIDENTIAL
ESSENTIAL FACTS: NOT FOR USE
FUTURE OF HONG KONG
1. Chinese reaction was generally encouraging.
They appear to be
focussing on the future, though without clear ideas or a firm time-
table.
Unlikely to be much progress by the time the Prime Minister
visits in September.
circles' in Hong Kong is vague. Chinese may also not fully understand
the investor confidence concept and may be thinking that developments
in the Special Economic Zones will provide sufficient reassurance.
They appear not to have grasped yet the full fact that it is only
confirmed British administration that will maintain confidence.
Sovereignty is a key issue, given repeated Chinese references to
their policy on Taiwan.
Premier's reference to consulting 'various
HONG KONG AND GENERAL DEPARTMENT
27 JANUARY 1982
CONFIDENTIAL