SECRET

reflect very badly on Britain and China.

7. We do not obtain revenue from Hong Kong nor have we colonialist

aspirations. We want best possible deal for Hong Kong people.

8. We welcome opportunity of talks to further our good relations

with China and to enhance relationship between Britain, China and

Hong Kong. Helpful if you can put this across.

DEFENSIVE

CHINESE DEADLINE OF SEPTEMBER 1984

9.

Chinese have said that if no joint agreement by then they will

make unilateral announcement. But clear that they, like us prefer

bilateral agreement. We are seeking, patiently and thoroughly, to

work towards this end. We don't find deadlines helpful?.

CHINESE 'RECONSIDERATION' OF 1997 DEADLINE IN EVENT OF TURMOIL'

10. We and Chinese share interest in maintaining Hong Kong's

stability/prosperity. We mean to achieve a settlement which will do

So. (Hong Kong's status has inhibited full democratic development.

CALLS FOR DEMOCRACY IN HONG KONG

11. But Hong Kong Government aware of local

aware of local aspriatae.

assessing recent changes in Local administrative system.

consider any further desirable changes.

Are currently

Will

HONG KONG DOLLAR AND EXCHANGE RATE FLUCTUATIONS

Key

Working well so

12. Measures taken September/October to stabilise dollar.

element Links Hong Kong and US dollars indirectly.

far.

SECRET

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