CONFIDENTIAL

317

(249) 1

Mr Donald

Donaza

MKK040/5

RECEIVED IN REGISTH

› SEP 1983

ccs: PS

PS/PUS

P

REGISTRY

Agiou faken

PS/Mr Luce

Mr Giffard

Mr Thomson, FED

Mr Marshall, NAD

Mr Roberts, News Dept Mr Walker, Research Dept

FUTURE OF HONG KONG: CALL BY US SENATORS ON CHINESE FOREIGN MINISTER

2.

Please see Mr Peirce's teleletter of 7 September (copy attached).

The Chinese are continuing to twist the facts about what has or has not been agreed in our negotiations with them. Foreign Minister Wu's remarks to the US Senators include the following:

3.

(a) The July and August sessions of talks were 'on the issue

of returning sovereignty to China'.

(b) The talks are 'centred on how to ensure the prosperity and

stability of Hong Kong after July 1997'.

(c) The recovery of sovereignty is non-negotiable (with the

implication that talks have only been taking place because Britain has accepted the Chinese precondition).

(d) What is under discussion is a transition period between now

and 1997.

(e) As Deng Xiaoping has said, if anything out of hand takes place the Chinese will reconsider the time and manner of recovery of Hong Kong.

(f) Hong Kong will be a Special Administrative Region from 1997

and for a certain period of time after this policies there will remain unchanged.

All the above is generally in line with what we know already of the Chinese position and of their propaganda campaign. But Wu certainly put the points very starkly and placed much emphasis on the possibility of bringing forward the timetable for 'recovery'. That cannot be good for confidence. So far as we know this is the first time that this point has been made to any third party. We continue to brief the Americans pretty fully on our negotiations; there will be an opportunity at the end of this month for the Prime Minister to bring them up-to-date. and to help to counter the sort of line taken by Foreign Minister Wu.

15 September 1983

Blip

R D Clift

CONFIDENTIAL

Hong Kong Department

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