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the n for an agreement by the end of 1984 bit probably intended simply to put on pressure and could obviously be adjusted. We did not regard the negotiations as subject to any deadline.
3. We had some further discussion about the state of business and other confidence in Hong Kong. I stressed the present optimistic mood in manufacturing circles and the increase in orders from a number of markets, including the United States.
I
4. Mr Nilsson did not make anything of Yao Guang's forthcoming visit to Scandinavia. He was not even sure when it was. He asked whether the Chinese would be likely to raise Hong Kong. said I thought it was quite possible. They might well try to put over the line that the settlement was a foregone conclusion and that neither Hong Kong nor outside investors need worry about interference. I thought it was quite useful if people pointed out to the Chinese some of the real difficulties that could arise if the link with Britain was cut.
Bun
R D Clift
24 August 1983
Hong Kong Department
CONFIDENTIAL