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SECRETARY OF STATE'S VISIT TO UN GENERAL ASSEMBLY

BILATERAL BRIEF NO 1: AUSTRALIA MR HAYDEN

POINT OF MEETING

(FUTURE OF HONG KONG)

1. To remind Mr Hayden that we are keeping the Australians fully

informed about our talks with the Chinese Government on the future

of Hong Kong and to stress the need to maintain confidence there.

POINTS TO MAKE

2.

Keeping you fully'informed. Sir J Mason briefed Mr Alf Parsons

DUS in Department of Foreign Affairs) 26 August. Your Deputy High Commissioner last briefed in London on 14 September. Mr Whitney visiting Australia 4-12 October, fully briefed.

under

way.

3. Encouraging that second phase of talks on the way: Reconvened 22-23 September.

4. Atmosphere good so far but Chinese tough on substance: insisting on recovery of sovereignty and say sovereignty and administration

indivisible.

5. We aim to hammer home importance of confidence factor. Chinese

plan for Hong Kong as Special Administrative Region of China ignores

Hong Kong's need for insulator against Chinese interference.

6.

Insulator is basis for confidence. Currently provided by British administration. Most Hong Kong people wish this to continue.

7.

Willing to consider any solution acceptable to China, Britain and Hong Kong but see tough path ahead.

8.

Meanwhile know you realise importance of saying or doing nothing to damage confidence.

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