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CONFIDENTIAL
MR HEATH'S DISCUSSION WITH CHINESE AMBASSADOR
FUTURE OF HONG KONG
Suggested Line to Take
a) Mr Heath has passed to the Foreign Secretary the contents
of his useful discussions with Mr Deng Xiaoping.
b) The FCO were interested and grateful to have this further
indication of Chinese thinking which is under study. As he
said to Deng, flexibility on the part of China will obviously
be important.
c) As the Chinese Ambassador will understand, Ministers are
currently much involved with the Falkland Islands crisis.
It is difficult at present for them to give full attention
to the Hong Kong situation, which all agree is very different.
d)
The Prime Minister's visit in September will provide a
good opportunity to carry the question further. Meanwhile all
are agreed that nothing should be done to prejudice stability
and confidence in Hong Kong.
CONFIDENTIAL