TL49/26
PEKING TL 319
GRS 155
CONFIDENT HAL
TELELETTER
FROM: R N PEIRCE ESQ, PEKIING
NFR
26TH AUGUST 83
FOLLOWING FOR: W MORRIS ESQ, HKD, FCO
RP MARGOLIS ESQ, ACTING PA, HONG KONG
FUTURE OF HONG KONG
1. WHEN VISITING US CONGRESSMAN ADDABBO SAW STATE COUNCILLOR JN PENGFEN: ON 24 AUGUST THE AMERICANS RAISED THE QUESTION OF HONG KONG. ACCORDING TO THE US EMBASSY, JR SAID THE FOLLOWING: '' AS HU YAOBANG AND ZHAO ZMYANG HAVE STRESSED, CHINA WILL RECOVER SOVEREIGNTY OVER HONG KONG. HONG KONG WILL REMAIN A CAPITALIST, FREE, INTERNATIONAL MARKET. CHINA AND BRITAIN ARE NEGOTIATING HOW, AFTER CHINA RECOVERS SOVEREIGNTY, PROSPERITY AND STWBILITY WILL BE MAINTAINED AND WHAT MEASURES SHOULD BE ADOPTED TO ACHIEVE THIS END. THESE NEGOTIONS HAVE JUST STARTED AND HAVE NOT YET TOUCHED ON THE ESSENCE OF THE QUESTION **.