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.
Significant
2. Hong Kong also important to UK. Hong Kong adds
substance to our relations with Chinese.
trade and capital investment from UK. Population wants
Hong Kong to remain British. Absorption by China could
lead to huge 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.
major achievement.
Solution of problem would be
3. Need public assurance from Chinese that Hong Kong
will remain under British Administration for foreseeable
future. Continued British administration likely to be
most difficult for Chinese to agree to accept, rather than
just tolerate a problem left over from history. They will
expect at least our acknowledgement of Chinese sovereignty.
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