Minuti 8 2019

M. SATA (HKD)

SECRET

Sevety of State (564)

were FROM: R D Clift

мене

Some of the points arising discursed at an office meeting on

по

conclurious were

DATE:

Hong Kong Department

16 September 1985

Lukkotol

RECEIVED IN REGISTRY

PS/M Luce. PS/PUS NOFX

R

JA

P 1983

REGISTRY Action Taken

Sir ♬ Bullard CM26/9

19/9, altough

recubed. Entire presentation will depend over much on the came

of talks, but we cc: of the next round ertainly need to be more active in me way

or another. The JIS regards the F.FAR. Mr Donald piece as damaging, although it was agreed that there seemed little alternative Mr Elliott, FED to continring to fall to Exco. He has

Kuning marked four questions in the FEER piece

Mr Giffard

See (575)

Sir Ian Sinclair Mr Roberts, News Dept

Mr Walker, Research Dept

which

need answering. Grateful for

eving. Grateful for comments.

FUTURE OF HONG KONG : PRESS COMMENT AND STATE OF CONFIDENCE

1.

I have today submitted proposals for No 10 on the line for the 19/9.

next round of talks. To avoid overloading the material I have not dealt there with the current atmosphere in Hong Kong.

2. During the recess in the talks, public and press opinion has become increasingly gloomy. This has been reflected in the general trend of the stock market and the Hong Kong dollar. The latter has stood at the low figure of 7.89 to the US dollar for the last three days.

3.

The main cause of the decline in confidence has clearly been the Chinese propaganda campaign. This has mounted steadily with the theme that sovereignty and administration must be recovered by 1997 and with increasingly specific repetitions of the line taken by the Chinese negotiators in the talks, including:

4.

(a) the indivisibility of sovereignty and administration; (b) the unacceptability of a British administrative role in

Hong Kong after 1997;

(c) the "deadline" of September 1984;

(d) the adequacy of Chinese assurances for the future autonomy of

Hong Kong.

This has been accompanied by high profile activities by Xu Jiatun, Head of the NCNA in Hong Kong.

5. The Chinese message has been relayed and commented on extensively by the Hong Kong press and, in the last few days, increasingly by the British press.

Articles in today's Financial Times, Dateline Peking and Hong Kong, are examples. I understand from News Department that a "very gloomy" article on Hong Kong will appear in the Sunday Times this weekend.

6. The Far Eastern Economic Review, which has on the whole been taking a helpful line, has a vitriolic piece in its 22 September issue, which attacks in turn the British, Chinese and Hong Kong

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