SECRET

CALL ON THE SECRETARY OF STATE BY VICE PRESIDENT BUSH:

9 FEBRUARY 1983

FUTURE OF HONG KONG

POINTS TO MAKE

1.

Know that you were briefed on Hong Kong in early

November 1982. Not much progress since then.

2. With your experience of the Chinese, how do you see

the situation developing? Do you think they would be prepared

to allow Hong Kong to remain in being as a prosperous

capitalist entity free of control from Peking?

[IF NO NEWS OF MR SHULTZ'S VISIT]

3.

Did the subject of Hong Kong come up during the

Secretary of State's visit to Peking? Did the Chinese show

any signs of flexibility in their position?

SECRET

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