SECRET
66
Fue
.cc Private Secretary
PS/Lord Belstead
PS/PUS
HICK
040/3
10 SEP 1752
füm 1019
CA
Mr Giffard
Mr Donald
Sir I Sinclair FED
(63)
FUTURE OF HONG KONG: MEETING WITH PRIME MINISTER, 10 SEPTEMBER 198'
1. Mr Coles's letter of 9 September mentioned certain information
A draft letter has required by the Prime Minister for this meeting. already been submitted on (b). Notes will be provided on (a) and (c)
before the meeting tomorrow morning.
2. As for the substance of the discussion, it is likely that the
Prime Minister will wish advice on the line which might be taken with the Chinese leaders given the problems of making concessions on sovereignty and of convincing the Chinese that continuing British
administration is necessary. I suggest the following key points:
a) The Prime Minister could emphasise that the chief
difficulty in maintaining confidence is not that we
doubt their competence to run an economy but that the
history of the past 20 years in China, particularly the
Cultural Revolution, has made both people in Hong Kong
and outside investors very unsure about facing up to any
It would be necessary change in present arrangements.
for the Chinese to establish a long and consistent track
record in political and economic stability before any
change in ultimate control over Hong Kong could inspire
confidence.
SECRET
/b)