GPS.950
RESTRICTED
RESTRICTED
FM HONG KONG 191325Z APR 33
TO IMMEDIATE FCO
TELEGRAM NUMBER 536 OF 19 APRIL 1933
INFO IMMEDIATE PEKING
FUTURE OF HONG KONG: PRESS REPORTS
TOP COPY
MKK04012
2 1 APR 1983
(44)
TODAY'S ECONOMIC JOURNAL'S (INDEPENDENT) FRONT PAGE
STORY UNDER THE HEADLINE QUOTE CHINA REJECTS CONFIDENTIAL BRITISH PROPOSALS UNQUOTE. QUOTING QUOTE SOURCES CLOSE TO CHINESE OFFICIALS
UNQUOTE THE JOURNAL ASSERTS THAT BRITAIN PUT FORWARD A SECRET PROPOSAL ON HONG KONG'S FUTURE THROUGH THE BRITISH EMBASSY IN PEKING LAST OCTOBER. THE PROPOSAL CONCENTRATED ON THE MAINTENANCE
OF HONG KONG'S STABILITY AND PROSPERITY AND DID NOT (NOT) DEAL
WITH THE QUESTION OF SOVEREIGNTY. THE BRITISH SIDE INSISTED THAT
THE TALKS BE CONDUCTED WITHOUT PRECONDITIONS. HOWEVER, SIR P CRADUCK
HAD HINTED ORALLY TO ZHANG WENJIN DURING THEIR PRELIMINARY CONTACTS
THAT THE BRITISH MIGHT RECOGNISE CHINA'S SOVEREIGNTY OVER HONG KONG
IN RETURN FOR RETAINING ADMINISTRATIVE CONTROL AFTER THE EXPIRY OF
THE NEW TERRITORIES LEASE.
See GO See (54)
2. THE ARTICLE SAYS THAT THE CHINESE SIDE DELAYED GIVING A REPLY
TO THESE PROPOSALS UNTIL LATE JANUARY THIS YEAR, WHEN YAO GUANG
TOLD SIR P CRADOCK ORALLY THAT THE PROPOSALS WERE UNACCEPTABLE.
THE BRITISH SIDE EXPRESSED DISSATISFACTION THAT THE CHINESE HAD
DELAYED THEIR REPLY FOR THREE MONTHS AND THAT THE CHINESE HAD NOT
RESPECTED THE CONFIDENTIALITY OF THE DISCUSSIONS. YAO GUANG EX-
PLAINED THAT THE MAIN REASON FOR THE DELAY WAS PERSONNEL CHANGES.
HE ALSO SAID THAT THE VIEWS EXPRESSED BY SENIOR OFFICIALS WERE NO
MORE THAN REITERATIONS OF CHINA'S PUBLIC STAND ON THE QUESTION AND
THAT THERE WAS NO BREACH OF THE AGREEMENT ON CONFIDENTIALITY. CHINA'S
OPEN DECLARATION OF HER POSITION WOULD IN FACT BE BENEFICIAL TO THE
PROGRESS OF THE TALKS.
3. YAO GUANG IS ALSO SAID TO HAVE STRESSED THAT SOVEREIGNTY WAS
NON-NEGOTIABLE AND THAT THE CHINESE SIDE COULD NOT PERMIT ANY
FORM OF BRITISH CONTROL AFTER 1997. THE TALKS WOULD THEREFORE
CONCENTRATE ON HOW TO MAINTAIN HONG KONG'S PROSPERITY BETWEEN NOW AND 1997, ON THE BASIS THAT SOVEREIGNTY LAY WITH CHINA. IN THE CHINESE VIEW THE TRANSITIONAL PERIOD BEFORE HONG KONG REVERTED
TO CHINA REFERRED TO THE 14 YEARS BEFORE 1997 AND NOT TO THE
POST-1997 PERIOD. ON THE PREMISE THAT BRITAIN ACCEPTED CHINESE
SOVEREIGNTY, THE CHINESE WERE ALSO PREPARED TO DISCUSS WITH THE BRITISH SIDE REFORMS TO THE EXECUTIVE AND LEGISLATIVE COUNCILS
AND THE QUESTION OF HONG KONG'S RESERVES. IN OTHER WORDS CHINA
WAS PREPARED TO DISCUSS WITH BRITAIN ANY MATTERS RELATING TO THE
TRANSITIONAL PERIOD BEFORE 1997. THE QUESTION OF HONG KONG'S
FUTURE AFTER 1997 WAS A DOMESTIC MATTER FOR CHINA AND DID NOT
CONCERN OTHER COUNTRIES.
RESTRICTED
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