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TO PRIORITY FCO

TELEGRAM NUMBER 151 OF 24 MARCH

INFO ROUTINE HONG KONG PEKING (PERSONAL FOR AMBASSADOR).

Hanоyols

TOP COPY

FOLLOWING FOR DONALD

685

FCO TELNO 88: CHINESE PREMIER'S VISIT TO AUSTRAL

Attached to 87

WEL

28 MAR 1983

hist

ེ་མ

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87

1. ALL THE EVIDENCE HAVE (SEE IN PARTICULAR CULLIMORE'S LETTERS TO BURDESS OF 6 JANUARY AND CLIFT OF 17 MARCH, AND HONG KONG TELNO 384) SUGGESTS THAT YOU ARE RIGHT IN SUPPOSING THAT THE SUBJECT OF HONG KONG WILL COME UP DURING PREMIER ZHAO'S FORTHCOMING VISIT TO AUSTRALIA. I THINK IT VERY LIKELY THAT THE AUSTRALIANS WILL RAISE IT THEMSELVES IN VIEW OF THEIR CONSIDERABLE INTERESTS THERE. AT THE VERY LEAST THERE WILL BE PRESS QUESTIONS FOR THEM TO DEAL WITH. IT IS EQUALLY CLEAR FROM THE EVIDENCE THAT THE AUSTRALIANS WOULD WELCOME UP-TO-DATE BRIEFING EY US BOTH ON THE STATE OF OUR NEGOTIATIONS WITH THE CHINESE AND OUR ASSESSMENT OF CHINESE INTENTIONS. THEY HAVE EXPRESSED THE HOPE THAT SIR A DUFF WILL BE ABLE TO PROVIDE THIS DURING HIS FORTHCOMING VISIT WHICH FORTUITOUSLY PRECEDES PREMIER ZHAO'S

VISIT BY ABOUT A WEEK.

2. I THINK IT WOULD BE DISTINCTLY HELPFUL TO PROVIDE THE APPROP- RIATE TOP AUSTRALIAN OFFICIALS (YEEND, HENDERSON AND COOK) WITH AS FULL A BRIEFING AS POSSIBLE ON CHINESE INTENTIONS AND WITH DEFENSIVE TALKING POINTS. THIS WOULD SUPPLEMENT AND UP-DATE THE BRIEFING ALREADY PASSED ON OTHER CHANNELS AND GIVEN BY ME TO SIR G YEEND, IF NECESSARY THIS BRIEFING COULD BE ON THE UNDERSTANDING THAT IT SHOULD NOT BE PASSED FURTHER DOWN THE LINE. BUT, ON THE ASSUMPTION THAT WE HAVE AGREED WITH THE CHINESE THAT THE CONTENT OF OUR NEGOTIATIONS WITH THEM SHOULD BE KEPT SECRET FOR THE TIME BEING, RECOMMEND THAT WE SHOULD BE CAUTIOUS NOT TO DIVULGE MORE THAN THE ESSENTIAL MINIMUM OF INFORMATION ABOUT THE NEGOTIATIONS THEMSELVES PARTLY BECAUSE OF THE RISK THAT THE AUSTRALIANS MIGHT, PERHAPS INADVERTENTLY, THINGS TO THE CHINESE FROM WHICH THEY COULD DEDUCE THAT WE HAD TOLD THE AUSTRALIANS MORE THAN WE SHOULD.

SAY

3. AS REGARDS YOUR PARA 5, I THINK THE AUSTRALIANS WOULD BE WILLING IN PRINCIPLE TO MAKE GENERAL POINTS ABOUT THE NEED TO ENSURE THE CONTINUING STABILITY OF HONG KONG SO THAT IT COULD CONTINUE TO PROSPER (AND THEREBY BENEFIT ALL CONCERNED, NOT LEAST CHINA) BUT THEY WOULD BE CAUTIOUS ABOUT GETTING INVOLVED IN DETAIL

IN A WAY WHICH MIGHT LEAD THE CHINESE TO SUSPECT THAT THEY WERE ACTING ON OUR BEHALF. ALTHOUGH AS YOU SAY THE AUSTRALIANS HAVE SIZEABLE INVESTMENTS IN HONG KONG THEY ALSO HAVE AN INCREASINGLY

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