SECRET
SECRETARY OF STATE'S MEETING WITH MR SHULTZ: 3 MARCH 1983
FUTURE OF HONG KONG
POINTS TO MAKE (Defensive)
1. Glad you were able to visit Hong Kong last month.
Understand the Governor briefed you on developments.
2. Sir P Cradock saw Chinese Vice Foreign Minister Yao Guang
on 9 February: no progress made. Chinese still not prepared to
hold substantive talks without acceptance of their premise on
sovereignty.
3. Chinese propaganda campaign well orchestrated and widespread
but our efforts remain concentrated on finding formula to get
substantive talks started. Wrong to negotiate through the media.
4. In Hong Kong confidence still high. How did you find things?
Grateful for US efforts to educate Chinese about how Hong Kong
works.
SECRET