SECRET

HKK 040/5

VISIT BY PORTUGUESE FOREIGN MINISTER AND MFA SECRETARY GENERAL,

21 22 SEPTEMBER 1983.

BRIEF NO 10: HONG KONG AND MACAO

POINTS TO MAKE (DEFENSIVE)

A.

1.

Future of Hong Kong

Talks through diplomatic channels between Britain and China agreed last September. Meetings held in Peking with common aim of maintaining Hong Kong's stability and prosperity.

2. Second, more detailed, phase of talks began in July. Will

reconvene 22/23 September after seven week recess. Chinese

delegation led by Vice Foreign Minister Yao Guang, British delegation by HMA Peking. Governor of Hong Kong participating as appropriate on British side.

3. Content of talks confidential.

Atmosphere generally friendly

though Chinese line on substance tough throughout.

4.

Our aim is to seek a settlement acceptable to Britain, China and people of Hong Kong. Their views being taken fully into account. Made known to us and Governor through many channels. We are in close consultation, through the Governor, with Hong Kong's Executive Council (EXCO). Mr Luce to visit Hong Kong 24-28 September.

5. Chinese propaganda has floated idea of Hong Kong as Special Administrative Region (SAR) under Chinese constitution, with considerable autonomy and functioning essentially as it does now. Propaganda campaign aimed at undermining our position. Party General Secretary, Hu Yaobang, told Japanese reporters on 15 August that China would recover sovereignty over Hong Kong on 1 July 1997. He gave erroneous impression. We have conceded nothing.

SECRET

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