SECRET
TOP COPY
HKK 027/20
2 4 SEP 1983
NG 51
20394
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OO PEKING
GRS 583
SECRET
FM FCO 231315Z SEP 83
TO IMMEDIATE HONG KONG
TELEGRAM NUMBER 961 OF 24 SEPTEMBER
INFO IMMEDIATE PEKING
MIPT.
KONG.
PROPOSED STATEMENT FOR MR LUCE'S USE WITH THE MEDIA IN HON
1. AS YOU KNOW THE TALKS WITH THE CHINESE GOVERNMENT ARE
CONTINUING. THE NEXT ROUND WILL BE ON 19 AND 20 OCTOBER. IT IS
OF COURSE VERY USEFUL FOR ME TO BE IN HONG KONG SO SOON AFTER THE LATEST ROUND AND TO HEAR THE VIEWS, NOT ONLY OF THE GOVERNOR AND AMBASSADOR BUT ALSO OF THE EXECUTIVE COUNCIL AND UMELCO ON
THE PRESENT POSITION..
2. SINCE THE BEGINNING OF THE NEGOTIATIONS, WE HAVE SAID VERY
LITTLE ABOUT OUR VIEWS ON THE FUTURE OF HONG KONG. WE THOUGHT IT
BEST THAT OUR TALKS ON THIS SUBJECT WITH THE GOVERNMENT OF THE
PEOPLE'S REPUBLIC OF CHINA SHOULD BE KEPT CONFIDENTIAL.
WE HAVE DELIBERATELY AVOIDED NEGOTIATION IN PUBLIC AND
WE STILL BELIEVE THAT IS RIGHT. ABOVE ALL WE MUST AVOID PREJUDGING THE FINAL SETTLEMENT. HOWEVER, OUR SILENCE HAS
BEEN IN SOME QUESTIONS MISUNDERSTOOD AND MISINTERPRETED.
THINK IT MAY BE HELPFUL IF I GIVE YOU SOME BACKGROUND TO EXPLAIN
OUR APPROACH TO THE QUESTION.
I THEREFORE
3. AS YOU KNOW, CONTRARY TO THE BELIEF OF SOME, THE BRITISH
GOVERNMENT DRAW NO DIRECT ECONOMIC BENEFIT FROM THE PRESENT
STATUS OF HONG KONG. WE RECEIVE NO TAX REVENUE FROM HONG KONG
AND HAVE NO CONTROL OVER THE HONG KONG GOVERNMENT'S RESERVES.
CLEARLY WE HAVE A VERY STRONG INTEREST IN THE CONTINUED
PROSPERITY OF AN IMPORTANT TRADING PARTNER AND FINANCIAL CENTRE,
IN WHICH COMPANIES FROM BRITAIN AND MANY OTHER COUNTRIES HAVE
CONSIDERABLE INVESTMENTS. BUT OUR COMMITMENT TO HONG KONG DOES
NOT STEM FROM THAT, OR FROM ANY CONSIDERATION WHICH COULD RIGHTLY
BE LABELLED COLONIAL. IT IS BASED ON OUR
SENSE OF RESPONSIBILITY FOR THE FUTURE OF THOSE PEOPLE WHO HAVE
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