SECRET

Foreign and Commonwealth Office

London SW1A 2AH

ник 0405

HKK 040/5

9 MAR 1983

9 March 1983

HKR040/1

1982

825

CW Long Esq

UKMIS GENEVA

Dear Christopher,

FUTURE OF HONG KONG

[AF3

54

1. Thank you for your letter of 23 February following Bim Davies' visit.

2. As I am sure you realise the question of Hong Kong's' future is very sensitive. The Prime Minister is very much involved here and things are being kept extremely close. As Bim no doubt explained, the Chinese are waging a propaganda campaign which floats the idea of Hong Kong as an 'autonomous' Special Administrative Region, answerable to Peking, in which pretty well everything would continue as before: an idea which most Hong Kong people, and investors, regard, not surprisingly, with a good deal of scepticism and mistrust.

3. We, for our part, have no desire to engage the Chinese in a full-scale propaganda war, but are concentrating on the meetings through diplomatic channels set up as a result of the Prime Minister's visit to China last September (our Guidance telno 192 of 20 October refers, in particular para 6). These are continuing. We would agree with Bim that, while the talks are likely to be slow, the next couple of years are very important.

4. There are some signs that the Chinese may step up their propaganda campaign and widen the net. If you do find them pushing a line in Geneva please let us know; otherwise, unless there is a change in our tactics, please continue to play the subject down.

5. Finally, although Bim Davies is much involved in work on the future, the lead in Hong Kong is of course still taken by the Governor, supported by the Political Adviser, Robin McLaren.

SECRET

Dich

R D Clift

Hong Kong and General Department

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