CODE 18-77

34

Reference

CONFIDENTIAL

P.S.

Separate Copies:

Mr Hallett, ESID

Mr Bugrows, Legal Advisers

MKK040/5

- / UGT 1283

FUTURE OF HONG KONG: 4 PAPERS ON HOW HONG KONG WORKS

/

was

1. You may recall that at the talks in Peking on 2/3 August we gave the Chinese 4 papers produced in Hong Kong, on the economic, monetary, financial and legal systems. These were factual papers whose purpose

to try to educate the Chinese about the complexities of the systems in Hong Kong. Since then the Australians, whom we keep generally abreast of developments on the future of Hong Kong, have asked if they could have copies of the 4 papers.

The decision has been taken here that it would not be appropriate for us to hand over to the Australians documents which we gave the Chinese during what we in particular regard as confidential talks. If it leaks out the Chinese could very rightly accuse ԱՏ of breaching this confidentiality.

2. It has been agreed, however, that we could pass the Australians somewhat re-hashed versions of the summaries of these papers. This is not very satisfactory. But in the circumstances it seems to be the only Course open to us, particularly as the Australians have been somewhat aggrieved in the past that we have not kept them as fully in the picture as they would like.

3. I attach our revised summaries together with the original papers. I should be most grateful if Mr Hallett could look at the first 3 papers and amend any oddities and if Mr Burrows could do likewise in respect of the legal paper. I should be grateful if any

comments and amendments could be sent direct to Mr Forester-Bennett, who has recently joined the Future of Hong Kong Section, in WH 304.

26 September 1983

CC:

Mr Forester-Bennet

W Morris Hong Kong Dept 233 3722

Mr. Forester Bennett Pe. see attacked redraft of the legal fefe.

CONFIDENTIAL

7. Bunous 3719

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