GPS 300
CONFIDENTIAL
CONFIDENTIAL
b
(AMENDED DISTRIBUTION 6 OCTOBER)
FM CANBERRA 06060OZ OCT 83
TO IMMEDIATE FCO
TELEGRAM NUMBER 524 OF 6 OCTOBER
INFO PRIORITY HONG KONG (PERSONAL FOR GOVERNOR), PEKING,
UKMIS NEW YORK
CPY
(360) UKMIS NEW YORK TELEGRAM NO 942 TO YOU: SECRETARY OF STATE'S
MEETING WITH THE AUSTRALIAN FOREIGN MINISTER: HONG KONG RECEIVED IN ASCISTAY
HKK04015
1983
DET ER TIL R: #
24
ARB
1. WHEN MR WHITNEY CALLED ON HENDERSON, SECRETARY IN THE
AUSTRALIAN DFA, ON 6 OCTOBER, THE LATTER SAID THAT HE WANTED
TO BRING MR WHITNEY UP-TO-DATE ON HONG KONG. FOLLOWING UPON
HIS DISCUSSION WITH THE SECRETARY OF STATE, MR HAYDEN HAD-
HAD A MEETING WITH WU ON 3 OCTOBER.
2. WU HAD REPEATED A LINE FAMILIAR TO MR HAYDEN. HE HAD
STUCK TO THE CHINESE POSITION ON THE INDIVISIBLILITY OF
SOVEREIGNTY AND ADMINISTRATION. SOVEREIGNTY COULD NOT BE PLACED ON ONE SIDE, AS THE BRITISH APPEARED TO WISH. MOREOVER, BRITAIN WAS OVERSTATING THE PRESENT DIFFICULTIES IN HONG KONG, AND HAD
CONTRIVED THE PRESENT WEAKNESS OF THE HONG KONG DOLLAR ACCORD-
INGLY. HOWEVER, SEPTEMBER 1984 REMAINED THE DEADLINE FOR THE
COMPLETION OF DISCUSSIONS IN PEKING, AFTER WHICH, IF SATIS- FACTORY PROGRESS HAD NOT BEEN MADE, THE CHINESE WOULD UNILATERALLY
DECLARE THEIR INTENTION TO REPOSSESS SOVEREIGNTY IN 1997.
NONE OF THIS WAS NEW TO MR HAYDEN.
3. IN REPLY, MR HAYDEN HAD TOLD WU THAT BRITISH CONCERNS WERE NOT TO BE DISMISSED LIGHTLY. THEY WERE GENUINELY WORRIED
ABOUT A FLIGHT OF CAPITAL FROM HONG KONG ARISING OUT OF THE
PRESENT UNCERTAINTIES. IT SEEMED TO MR HAYDEN THAT INADEQUATE
CHINESE RECOGNITION OF THE SPECIAL CHARACTERISTICS OF HONG
KONG COULD LEAD TO INSTABILITY IN THE REGION, WHICH THE AUSTRALIANS, WITH THEIR INTEREST THERE, WOULD DEPLORE.
4. MR WHITNEY THANKED HENDERSON FOR MR HAYDEN'S HELPFUL
INTERVENTION. THE MORE THE AUSTRALIANS COULD EXPLAIN THE
REALITIES OF THE POSITION TO THE CHINESE, THE BETTER FOR ALL CONCERNED. MR WHITNEY UNDERTOOK THAT WE WOULD KEEP IN CLOSE
TOUCH WITH THE AUSTRALIANS ON THE SUBJECT.
MASON
FUTURE OF HONG KONG
LIMITED
HD/HKD
COPIES TO
SIR IAN SINCLAIR LEGAL ADVISER MR BURROWS
LEGAL ADVISER
HD/FED
MR ROBERTS
HD/PLANNING STAFF
MR MARTIN
HD/PUSD
PS
PS/LADY YOUNG
MR FLOWER
PS/MR LUCE
MR COLES
PS/PUS
SIR J BULLARD
MR GIFFARD
MR DONALD
MR WRIGHT
SIR A PARSONS
MR WALKER
CONFIDENTIAL
NEWS D
ASSESSMENTS STAFF
CABINET OFFICE
PUSD
NO 10 DOWNING STREET
NO 10 DOWNING STREET
RESEARCH D OAB
385
REGISTRY Action Taken