See (347)
Dear John,
SECRET
AKD
(348)
Foreign and Commonwealth Office
London SWIA 2AH
16 June 1983
HKK040/1
RECEIVED IN REGISTRY NO. 51 17 JUN 1983
DESK OF INDEX
REGISTRY
Arvon Taken
m
Future of Hong Kong: Death of Liao Chengzni
As you know, Chinese Politburo member Liao Chengzhi died in Peking on 10 June. You may be interested in a
copy of the Times' obituary of 11 June.
Liao, who was 75, had for many years been Director of the State Council's Hong Kong and Macao Office, the main policy-forming body dealing with Hong Kong, answerable not to the Foreign Ministry but direct to the Party leadership. In this role Liao had become one of the key figures on the Chinese side dealing with the question of Hong Kong's future. In the past he was also much concerned with Japan and with Overseas Chinese affairs.
It is too early to say what effect Liao's death will have on China's policy towards Hong Kong's future and on our negotiations with the Chinese. According to
report in early June, officials in China's negotiating team were having to refer all matters to the Hong Kong and Macao Office where Liao himself was empowered to take decisions on behalf of the leadership. The report said that Liao was regarded by some Chinese officials as ''cautious and reasonable'', but also mentioned that there was growing criticism in certain quarters of the Foreign Ministry that he was being 'too soft' on the British. A similar report suggested recently that Liao was being further criticised because propaganda and United Front work being carried out in Hong Kong under his direction was disorganised and undisciplined. It is difficult to be sure about the truth of these reports. For example, it was also rumoured that Liao was to have become Vice President of the PRC at last week's National Party Congress (NPC).
A J Coles Esq
No 10 Downing Street
CONFIDENTIAL
/One
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED
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