HO/FO 003/29
C O
MKK 0 26/20
TA.
200
RESTRICTED
FM HONG KONG 990248Z JANUARY 82
TO IMMEDIATE F C O
TELEGRAM NUMBER 20 OF 89 JANUARY
FOR NEWS DEPARTMENT
IMMEDIATE
MER oyoll
Ad
His
May W Lennox fe
FROM WESTBROOK PS/LPS
AX11,
1. CLARE HOLLINGWORTH OF THE SUNDAY TELEGRAPH TOLD THE L P S THIS MORNING THAT CHINESE OFFICIAL AND BANKING SOURCES BELIEVED THAT IT WAS NOW CHINESE POLICY THAT BRITAIN SHOULD HAND BACK SOVEREIGNTY OF THE ISLAND OF HONG KONG AND COASTAL KOWLOON AND THAT IN EXCHANGE THE CHINESE WOULD ASK THE BRITISH TO ADMINISTER HONG KONG AND THE NEW TERRITORIES FOR A SET PERIOD - PROBABLY 30 YEARS. THE L P S IN REPI.Y SAID HE HAD NOT GONE TO PEKING WITH ANY FIRM PROPOSALS
ABOUT HONG KONG'S FUTURE NOR HAD ANY BEEN PUT TO HIM. HIS
CLEAR UNDERSTANDING WAS THAT FAR FROM HAVING AN AGREED POLICY
THE CHINESE WERE ABOUT TO STUDY THE MATTER IN DEPTH AND
THAT WHEN THEY DID SO THEY WOULD KEEP VERY MUCH IN MIND
HONG KONG'S POSITION AS A FREE PORT AND AS A CENTRE OF
COMMERCE AND TRADE. (THIS STORY IS TYPICAL OF THE
SORT OF SOLUTIONS BEING CANVASSED IN COMMUNIST AND OTHER CIRCLES IN HONG KONG. IT IS ONLY OF SIGNIFICANCE IN CONFIRMING THAT THOUGHT IS BEGING GIVEN TO A SOLUTION).
2. AS FAR AS THE SPECIAL ECONOMIC ZONES WERE CONCERNED THEY WERE
SOMETHING IN WHICH THEY WANTED HONG KONG TO TAKE PART. THEY
HAD WELCOMED THE GOVERNOR'S RECENT VISIT AND HE HAD SET
ABOUT ENCOURAGING HONG KONG TO INVEST THERE.
3. THE L P S SAID THAT CHINA HAD PROBLEMS IN BUILDING UP
THEIR ECONOMY AND APPEARED TO HAVE OVER-REACHED THEMSELVES
IN INVESTMENT IN HEAVY INDUSTRY THEREFORE THE EMPHASIS WAS
SHIFTING TO LIGHT INDUSTRY AND CONSUMER GOODS. HE BELIEVE D
OPPORTUNITIES FOR TRADE WERE THERE,
MACLEHOSE
KATEG
Page 135Page 136