SECRET
DSR 11C
SECRETARY OF STATE'S MEETING WITH THE PRIME MINISTER
ON 2 APRIL : FUTURE OF HONG KONG
POINTS TO MAKE
1. Chinese seem at last to be focussing on problem.
They need economic benefits of Hong Kong for foreseeable
future. But political difficulties for them.
2. Hong Kong also important to UK. Hong Kong a plus in
relations with Chinese. Significant trade and capital
investment from UK. Population wants Hong Kong to remain
British. Absorption by China could lead to huge problems.
Considerable British investment. Immigration problems.
100,000s would look to UK for resettlement. Also much
investment from allies eg US, Australia, Japan. Political
significance of Western foothold in Far East. Now only
15 years to 1997. Ever-present risk of collapse of
confidence in territory increases as time passes. Solution
of problem would be major achievement.
3. Need public assurance from Chinese that Hong Kong
administration
will remain! British/for foreseeable future. Continued
Under
Λ
British administration likely to be most difficult for
expect
Chinese to accept. They will need at least our acceptance
of ultimate Chinese sovereignty.
SECRET
/4.