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is particularly concerned that, in order to maintain confidence in
the Territory, the Prime Minister should be able to demonstrate such
a step forward.
5.
Paragraph 3sets out the main objectives for the Prime Minister's
visit to Peking. Despite the mutual desire to continue the stability
and prosperity of Hong Kong, there is a wide gap between HMG and the
PRC as to how these aims should be achieved. Given that gap, I believe
that Para. 3 represents realistic objectives for the Prime Minister's
visit. However I am concerned that the Prime Minister may feel that
we are not setting our sights high enough and that she will need to
have a better tale to tell in Hong Kong. The only additional objective which might be included in Para. 34 is the question of Crown Land Leases
in the New Territories (Annex 0). If the Prime Minister could get an
agreement in Peking to an interim arrangement to cover the grant of
these leases beyond 1997, it would be a great encouragement to morale
in Hong Kong and would be real evidence of some advance as a result of
the visit. However both Sir Edward Youde and Sir Percy Cradock consider
that the Chinese would not be prepared to concede this point. I
therefore conclude, reluctantly, that it would not be practicable to
pursue this, as it might risk a row with the Chinese which would be
the worst possible outcome of her visit.
6. I submit a draft letter with which you may wish to send the
paper to the Prime Minister. This includes a specific reference to
a point which the Prime Minister raised at her meeting on citizenship.
She wondered whether an agreement with China might be more readily
saleable to Parliament and public opinion if it included provision for
people in Hong Kong to lose their status as British Dependent Territories'
citizens, thus weakening their claim to come to the UK. In fact the
paper concludes that such a move would seriously damage confidence and
would rather encourage people to leave the Territory, pressing a moral
claim that HMG should look after them.
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17. Handling: