*
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Deng Xiaoping added, "When Mrs Margaret Thatcher visited China, I talked with her about three questions: (1) to hold the Hong Kong talks
on the premise that China will regain sovereignty over Hong Kong and
Kowloon in 1997; (2) to discuss the system to be adopted in Hong Kong upon reversion of sovereignty and to keep several things unchanged: the free life-style would not be changed, the status of Hong Kong as a financial
centre and free port would be maintained, the law would remain basically unchanged while the final judicial power would rest with Hong Kong's highest
court; (3) to discuss how Britian and China should co-operate during the
runup to 1997 if Hong Kong's prosperity were not to be impaired." Deng
mentioned once again that talks with Mrs Margaret Thatcher last year were
unhappy. Her emphasis on the three treaties and British sovereignty over
Hong Kong was unacceptable to China. The British had now changed their
position, no longer insisting on the treaties and sovereignty. This was a
change for the better. The Chinese and British authorities would be able to
begin further contacts and substantive talks. Meanwhile, substantive talks
between China and Britain had yet to begin. Here the question of 'face'
was involved, when to begin with, the British had to acknowledge China's
sovereignty over Hong Kong and accept it as a pre-condition to the talks.
Deng Xiaoping again expressed, "We will enable the British to back down with grace." The talks might not start with the recovery of sovereignty. The second question, i.e. what to do after 1997, could be tackled first.
Once agreement was reached on the second question, there would not be much
to be ironed out on the first question (of sovereignty). Deng Xiaoping then
inquired of Hong Kong and Macau delegates to the National People's Congress
and Chinese People's Political Consultative Conference how they viewed the
position of the British on the question of Hong Kong's future.
One of the delegates asked if the Hong Kong issue could be
resolved by way of signing a new treaty with the British or extending the
lease. Deng stated in clear-cut terms that there would neither be any new treaty nor lease extension, adding, "If I were to agree to an extension of the lease, I would be regarded as (another) Li Hongzhang." Deng Xiaoping
further said that talks between the two countries could not drag on for too
long, or people's confidence would be adversely affected.
/ Turning to who