SECRET
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ut without agreement on concrete arrangements on administration and control, I could not make any recommendations to my Government
on the question of sovereignty.
To sum up so far,
will leave Hong Kong.
if we did not keep confidence now, money
It could collapse as an international
financial centre. We have to make arrangements to maintain confidence by keeping British administration and we have to do
it now.
I could then consider making recommendations to the
British Parliament
on sovereignty and I hope that the arrangements would be acceptable to both China and Britain as well as to the people of Hong Kong.
Because the situation is so sensitive and so immediate,
I propose that we should start official talks to reach an agreement on arrangements for the administration and control of Hong Kong after 1997 which would meet the wishes of China, Britain and the
people of Hong Kong and preserve its prosperity.
These discussions could cover whatever proposals China may wish to make about how present arrangements might be varied. The issues are complex and should be explored thoroughly by
officials as soon as possible.
There is a further point we must consider. Since I am going to be pressed hard on this issue in Hong Kong and London I hope that we can reach agreement during our talks both on the next steps in handling the problem and on what we should say in public. What we say in public is very important. Confidence in Hong Kong will be affected by what I say at my Press Conference here in Peking and later, and by any statement made on the Chinese side. I therefore propose:
(a) that we make it clear that our common objective is to strengthen and maintain the prosperity of Hong Kong
(b) that we should agree on a very early date for the start of official talks on how that objective can be maintained
FUKEN CWR BOTTd
Id make a public
(c) that before I leave for P
announcement to this effect.
/ Finally,