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his arrival, beyond noting that Xu was clearly not displeased that
some may have formed an impression of him as an alternative source
of power in Hong Kong and suggesting that Xu may be about to make
more visits of a "meet the people" nature. It is too early to draw
definite conclusions about Xu's motives. But it would be logical, given Xu's seniority in the Chinese hierarchy and what we know of
Chinese plans for the future of Hong Kong, if a deliberate attempt
was being made to build up the status and role of the head of the
NCNA. If this is successful, it could cause problems for the Hong
Kong Government, similar to those we have foreseen in considering the possibility of an official Chinese representative.
4.
I have asked Research Department to prepare a note on the historical background of the Walled City and of Chinese representations about it. So far as I am aware, the last official Chinese protest was in 1963, but the Chinese will obviously be aware
of its sensitive status. Xu's visit to the Walled City must
therefore have been deliberately planned. It seems to me unlikely that his real purpose was to draw attention to an example of poor living conditions under British administration. There would be many other ways of doing this, and if Mr Margolis' sources are correct, Xu may well pursue them in the near future. But to pick on the Walled City for the first such visit must have some significance. The Chinese may be demonstrating their ability to touch us on a sensitive spot, and reminding the people of Hong Kong, by oblique reference to the 1898 Convention, of the transience of British administration and the inevitability of the reassertion of Chinese sovereignty. The fact that any implied appeal was made to the terms of the Convention might not bother them too much; they have always been ready to apply and insist on those bits which suited them.
5.
If you agree, I will telegraph these ideas to Hong Kong and Peking and seek their comments.
12 August 1983
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R D Clift
Hong Kong Department
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