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SOVEREIGNTY OVER HONG KONG ON 1 JULY 1997 AND GAVE THE ERRONEOUS
IMPRESSION THAT WE HAD CONCEDED CHINA'S PREMISE ON SOVEREIGNTY.
4. DESPITE THE FRIENDLY ATMOSPHERE AT THE THREE ROUNDS, THE CHINESE LINE ON SUBSTANCE WAS TOUGH THROUGHOUT. THEY HELD TO
THEIR POSITION ON SOVEREIGNTY AND ADDED TO THIS THE LINE THAT
SOVEREIGNTY AND ADMINISTRATION WERE NOT DIVISIBLE. BOTH SIDES
REHEARSED THEIR BASIC VIEWS ON HONG KONG AND MORE DETAILS EMERGED
OF CHINA'S HONG KONG 'PLAN'. HMG'S OBJECTIVE DURING ALL THESE
MEETINGS WAS TO EXPLAIN TO THE CHINESE THE COMPLEXITY OF HONG
KONG'S ECONOMY AND LEGAL SYSTEM, THE IMPORTANCE OF THE BRITISH LINK IN MAINTAINING CONFIDENCE AND THE CONSEQUENT DISTRUST BY PEOPLE IN HONG KONG OF THE CHINESE PROPOSALS FOR THEIR FUTURE, REVEALED PUBLICLY. WE GAVE THE CHINESE A NUMBER OF PAPERS ON
SPECIFIC ASPECTS OF HONG KONG'S STRUCTURE. THE EVIDENCE SUGGESTS THAT, ALTHOUGH THEY ARE STANDING BY THEIR HARD LINE ON SOVEREIGNTY, THE CHINESE HAVE NOT YET THOUGHT THROUGH MOST OF THE DETAILED
ISSUES RELATING TO HONG KONG'S ADMINISTRATION.
AS
5, ALTHOUGH THE CHINESE LISTENED TO WHAT WE HAD TO SAY, AND SEEMED GLAD TO HAVE OUR EXPLANATORY PAPERS, IT REMAINS TO BE SEEN WHAT IMPACT THESE WILL HAVE. WE EXPECT THE CHINESE TO MAINTAIN
THEIR HARD LINE WHEN TALKS RESUME ON 22/23 SEPTEMBER. WE SEE A
HARD SLOG AHEAD, AND A PROBABLE INTENSIFICATION OF THE PROPAGANDA
CAMPAIGN.
WHITNEY
FUTURE OF HONG KONG
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STR J BULLARD
MR GIFFARD
MR DONALD
MR WRIGHT
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SIR I SINCLAIR LEGAL ADVISER
COPIES TO:
MR BURROWS
MR MARTIN
MR FLOWER
MR COLES
LEGAL ADVISERS
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MR WALKER, RESEARCH DEPT
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