SECRET & PERSONAL

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HKK 040/S

Sir Edward Youde GCMG MBE

Foreign and Commonwealth Office

London SW1A 2AH

18 February 1983

pcc:

Governor and Commander-in-Chief HRn040 5.

HONG KONG

Dear Teddy,

FUTURE OF HONG KONG

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2 FEB 1983

Head/PUSD

Mr Flower, PUSD Mr Wright

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75

1. As you know, the Prime Minister/decided that Sir Geoffrey Yeend should be given a briefing by Sir John Mason in Canberra on where we stand on the future of Hong Kong. This briefing was entirely on the lines of the briefings given to Shultz and Bush in Washington last year, but without any request for assistance.

I

2. You should also know that with the Secretary of State's approval I have given a personal briefing to the Australian High Commissioner here (Sir Victor Garland) about the future during which I stuck very carefully to the line taken by John Mason. emphasised the need for the strictest confidentiality. I said that there was no objection if the High Commissioner informed Tony Street but he would have to ensure that this was done through an absolutely reliable

channel. I was given this under- taking quite readily.

3. The Secretary of State was willing that Sir Victor should be briefed particularly since the High Commissioner was of certain JIC material being made available through the normal channels to a member of his Mission. In addition, Premier Zhao Ziyang is visiting Canberra in the spring and it is quite likely that Zhao will give a full account of the Chinese position to the Australians. But perhaps the clinching factor was the knowledge I had that the High Commissioner had it in mind to seek opinion in the City of London about the future of Hong Kong and test out what he had been reading in the newspapers. This could have

muddied the waters.

4.

We have not yet considered how we are to play the Australians when Zhao visits Australia in the middle of April. You may have some thoughts on this which we would be only too ready to take aboard. The difficulty about having briefed Tony Street is that we can never be sure which Australian Missions have been given any inkling of the true position. My impression from talking to Victor Garland is that Tony Street has not divulged any of the

Information given to him and that by and large Australian Missions overseas, even in Peking, may not have the full picture as we know it. Nevertheless, we must leave it to your discretion - and to Percy's - how far you need to take your Australian colleagues into your confidence.

cc: Sir Percy Cradock, KCMG

PEKING

SECRET & PERSONAL

Your ever,

Alaw

A E Donald

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER

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