SECRET

PRIME MINISTER'S MEETING WITH SIR S Y CHUNG, SENIOR UNOFFICIAL

MEMBER OF THE EXECUTIVE COUNCIL, AT 5 PM ON 4 MAY 1983: FUTURE

OF HONG KONG

POINTS TO MAKE

1.

Glad to continue our meetings to discuss the future of

Hong Kong. Pleased that since our last meeting EXCO have continued to play such an important role.

2.

We remain fully committed to achieving a solution that maintains stability and prosperity and is acceptable to people in Hong Kong as well as to Parliament.

3.

Progress bound to be slow. The Chinese have not helped by dragging their feet. But that does not alter our aim.

4.

Wanted, in my message to Zhao, to show that I am not in a

position to meet the Chinese premise on sovereignty but that we

are serious about starting detailed negotiations.

5.

Hope that Chinese response will be favourable. But if

not, shall continue to look for ways to make progress towards

the agreed objectives. Look forward to keeping in close touch

with you in either event, and welcome prospect of you and other

Unofficials visiting London with the Governor within the next

month or two.

6.

An additional

point will be provided when the PM's views are known].

SECRET

THIS IS A COPY

THE ORIGINAL HAS BEEN

CLOSED FOR

574 YEARS UNDER FOI EXEMPTION No. 40, 271) and (2)

38,41

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