Mr

FED

cox

SECRET AND PERSONAL

ce the Morris, HIGD

RECEIVED IN REGISTRY NO. 2 Eater

14 JAN 1983

68K OFFICEA INDEX

PA

to Walker, Researk D.

I Thomson

HKRо40/1

13JA 1983

32

Dug

Heath Chwars.

THE FUTURE OF HONG KONG

Many thanks for sending me a personal copy of the excellent draft paper on Chinese attitudes towards the future of Hong Kong.

1.

2. I only have the following comments:

(i)

It is very striking how the Chinese position on administration (imprecise although it still is), as opposed to sovereignty, only began to chrystallise in its present form in April/May

1982.

1

(ii) It would be useful to spell out in slightly more detail what

the Chinese have said since then either directly by officials or through the press - on what sort of administrativ arrangements they envisage. Practical administration rather than esoteric sovereignty is the key to Hong Kong's future.

(iii)On Chinese representation (para 15) a significant factor

may have been the increasingly official role played by NCNA after 1979. You would have to check, but I think it was only in 1978 that the First Director of NCNA was invited for the first time to Government House (to accompany a high powered visitor from China) and only in 1979 that direct dealings between the Governor and the First Director (includin attendance at Chinese National Day Celebrations) became commonplace. Consequently official representation per se became less important. But I would be surprised if the Chinese have actually dropped the idea.

(iv) In the ''implications'' it would be worth making the point tha

the Chinese leadership may genuinely not understand the damage their form of post 1997 administration would do

to Hong Kong's economy. If they did realise they might take a different view about ruling out British administration, despite the problems of national pride.

13 January 1983

سيارة

D C Wilson

Southern European Department SECRET AND PERSONAL

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