SECRET

MKKOAO 15

RECEIVED IN REGISTRY

SEP 1983

DUYN OFFICES

INNEZ

(258)

Mr Giffard

cc: Mr Donald o.r.

Mr Morris, HKD

Mr Chick, SPD (Personal)

FUTURE OF HONG KONG: BRIEFING OF AUSTRALIANS

1.

PA

CH6|10|

Mr Curtin of the Australian High Commission brought Mr Benson, his successor, to call. I gave them an updating on the future of Hong Kong. I told them that the latest round of talks had been tough. The Chinese had not shifted from their position. We had tried to get them to cooperate in some kind of action to restore confidence in Hong Kong. They had not agreed, maintaining that we must alter our stand first.

2.

We had a fairly extensive discussion of the present position, including the decline in the Hong Kong dollar. Mr Benson, newly arrived from Canberra, stressed the very keen interest of the Australian Government in the question. Without reproaching, both of them said that the Australians had felt ill-informed at the start but were now more in the picture. They were glad that the Secretary of State would be seeing Mr Hayden in New York and Mr Whitney would be talking about the future during his visit to Canberra. These were the first Ministerial discussions on the subject (they implied that it was high time). They assured me that Mr Hayden's intention in any of his public statements was to help confidence in Hong Kong. I did not comment on that but expressed understanding of their concern and our readiness to keep them in the picture. I said that Mr Whitney would be updated on any events which intervened before he arrived in Canberra.

3.

Since Mr Luce had mentioned it in his press conference in Hong Kong, I told them that the Unofficials would be coming here at the end of next week.

Shir

R D Clift

29 September 1983

Hong Kong Department

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