DARI KE

CONFIDENTIAL

BRIEFING FOR BACKBENCH CONSERVATIVE MPS ON HONG KONG'S FUTURE

POINTS TO MAKE

1. Stress confidentiality.

2. Recall Prime Minister's visit to Peking, September 1982.

Agreement on meetings through diplomatic channel. Common aim

of maintaining stability and prosperity.

3.

Several meetings have taken place between Sir P Cradock

and Chinese MFA. Meetings continuing but limited so far to

procedural matters because of Chinese insistence on premise of

recognition of sovereignty.

4.

Sovereignty key point. We are not inflexible.

clear to Chinese that sovereignty not in her gift.

PM has made

Subject to

Parliament's decision. But sure that if satisfactory arrangements

could

for Hong Kong's administration can be agreed, recommendations

would be put to Parliament on the sovereignty question.

5. Problem of achieving satisfactory practical arrangements.

Main objective to retain Hong Kong's freedom and way of life.

Continuation of present system would be best way of achieving this.

Key lies not in 'British administration''

1

in colonial sense but

in link with London as guarantee against interference by Peking.

Chinese propaganda. Floating idea of autonomous Hong Kong.

6.

Special Administrative Region of China, linked to Peking but

with assurances of non-interference after 1997. Hong Kong people

very sceptical of value of these assurances.

7.

Many important practical aspects. Problem of maintaining

credible independent currency. Legal system. Freedom of press.

No advantage in overt propaganda confrontation with Chinese.

8.

CONFIDENTIAL

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