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SECRET
GRE 700
SECRET
FROM PEKING 10070OZ AUG 63
TO PRIORITY FCO
TELEGRAM NUMBER 777 OF 10TH AUG 93
MKK09015
RECEIVED IN REGISTRY
¿AUG 1983
REGISTRY
PA
DESK OFFICER
INDEX
PA
Acron Taken
7
1CH118
See (240
INFO PRIORITY HONG KONG AND CANBERRA (PERSONAL FOR HIGH COMMISSIONER)
FUTURE OF HONG KONG: MR HAYDEN'S TALKS IN PEKING
1. THE AUSTRALIAN EMBASSY HERE HAVE GIVEN US A FULL BRIEFING OF MA
HAYDEN'S TALKS WITH WU XUEQIAN ON HONG KONG. THEY HAVE ASKED
THAT THE FACT THAT THEY HAVE GIVEN US THIS BRIEFING SHOULD NOT BE
REVEALED TO OTHER AUSTRALIAN MISSIONS OR TO THE DFA IN CANBERRA.
PLEASE PROTECT.
2. HAYDEN HAD SAID IN HIS OPENING STATEMENT TO WU THAT HE WOULD
LIKE BRIEFING ON HONG KONG AND TAIWAN. WU HAD RETURNED TO THE
SUBJECT AT A LATER STAGE IN THE TALKS. HE SAID THAT THE CONTENT
OF THE DISCUSSIONS BETWEEN THE UK AND CHINA WAS A PRIVATE MATTER.
HOWEVER HE COULD GIVE SOME BRIEFING ON THE CHINESE POSITION
THE ISQUE HAD BEEN RAISED BY MRS THATCHER WITH DENG AND ZHAO, WHO
MADE CLEAR THAT AFTER 1997 SOVEREIGNTY OVER THE WHOLE OF HONG KONG
WOULD REVERT TO CHINA, CHINA HAD NEVER RECOGNISED THE TREATIES.
THIS POINT WAS NON-NEGOTIABLE. BUT CHINA WOULD NEGOTIATE ON HOW
TO MAINTAIN THE STABILITY AND PROSPERITY OF HONG KONG. DENG HAD
MADE A FURTHER POINT OF PRINCIPLE: CHINA WAS PREPARED TO TURN
HONG KONG INTO A SPECIAL ADMINISTRATIVE REGION WHERE POLICIES
APPLICABLE TO THE CONDITIONS OF HONG KONG WOULD BE PURSUED, FIRMS
OF OTHER COUNTRIES INCLUDING THE UK COULD CONTINUE TO OPERATE:
THEIR PROPERTIES AND INTERESTS WOULD BE PROTECTED. THE STATUTES
AND LAWS WOULD REMAIN UNCHANGED. HOWEVER THERE WOULD BE A FEW MINOR
CHANGES, SUCH AS THE OMISSION OF REFERENCES TO HER MAJESTY'S
GOVERNMENT (MR HAYDEN OBSERVED AT THIS POINT THAT AUSTRALIA HAD
NOT YET GOT THIS FAR).
3. WU THEN REFERRED TO DENG'S RECENT MEETINGS WITH HONG KONG
DELEGATIONS TO THE MPC AND CCPCC. HE SAID THAT DENG HAD TOLD
THEGE DELEGATIONS THAT IN RESPECT OF THE FUTURE ADMINISTRATION
OF HONG KONG THE LOCAL CHINESE WOULD ELECT THEIR OWN REPRESENTATIVES
TO CONDUCT ADMINISTRATION. ALTERNATIVELY THE CHINESE GOVERNMENT
MIGHT APPOINT LOCAL PEOPLE TO MANAGE HONG KONG. BUT PEKING WOULD
NOT SEND IN OUTSIDE PEOPLE TO ADMINISTER THE TERRITORY. SRITISH ADMINISTRATORS WHO WERE HONG KONG RESIDENTS COULD
CONTINUE TO WORK IN THE ADMINISTRATION AS EMPLOYEES. CHINA
WOULD ALLOW HONG KONG TO HAVE ECONOMIC RELATIONS WITH OTHER
COUNTRIES AND HER POSITION AS A FREE PORT AND INTERNATIONAL
SECRET
LFINANCE
See (253)
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