CONFIDENTIAL

AKK

011/3

RECEIVED IN SZ-

2 5 NOV 1983

DESK OFFICE. INDEX

30

No

Mr Clift, Hong Kong Dept

From:

Date:

M. Huuna

Sony Acland 17 November 1983

Mr Krane

Advice pl

18/11

HONG KONG

1.

As you know

over Hong Kong.

2.

a good deal about the negotiations

I do not think that anything in his assessment was very new. He has no doubts that the Chinese are wholly insistent on gaining both sovereignty and administration.

3.

(a)

(b)

(c)

(a)

(e)

main comments were:

Does HMG really understand the Chinese mind and their need to maintain "face". Any challenge to their sovereign position and its attributes will be unacceptable to them.

Do we have enough Chinese advice. If he were conducting the negotiations he would use a top level Chinese consultant (I suspect he has Lee Kuan Yew or one of the Singapore Ministers of Chinese origin in mind).

EXCO is unrepresentative. We should pay more attention to the middle rank people in Hong Kong and to the workers who have no future other than in Hong Kong. The very rich can get out and have in any case already transferred their assets. It follows from this that we should be widening the representational system in Hong Kong and be building on and increasing the local councils.

We should think more carefully about public presentation in Hong Kong. The Chinese were very skillful at this and we were losing opportunities at not getting our views in the scores of local broadsheets.

The Bank of England should have intervened earlier to stabilise the Hong Kong dollar.

CONFIDENTIAL

THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED FOR

.......YEARS UNDER FOI EXEMPTION No. 27(1).....

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