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Mr Moptin 04075
Mr. Shift See pan 8: If it's not too
much truble x1 (pan8) might be useful.
M Elliott Esq Far Eastern Department
Monis
I really think it is clear
Dear Elliott
14/5
Dinla
enough dem Mis 14/9
VISIT TO ICELAND OF YAO GUANG
1.
BRITISH EMBASSY,
The Swent fi
REYKJAVIK.
8 September 1983
1) cc HKD
2) Mr Thomson.
PS
(324)
What about §8? quite interesting but we may have enough of the flavors.
شر
The Chinese First Deputy Foreign Minister, Yao Guang, visited Reykjavik from 31 August to 2 September for political talks. 2. The MFA tell me that little emerged that was not already well known. Yao Guang spent a good deal of his time haranguing the Icelanders on Cambodia but was not promised Iceland's vote, on which, along with the other Nordics, she abstained last time.
3. Yao Guang rehearsed the standard Chinese line on relations with the Soviet Union, and said that he doubted whether political relations would change much in the foreseeable future owing to continued Soviet "chauvinism". There would however be an increase in trade.
4. Hong Kong was discussed.
•
Yao Guang said that the time had arrived after 150 years of foreign domination for China to resume control of Hong Kong. The Government of the People's Republic had always considered the treaties with the United Kingdom "unequal", and had never regarded them in the same light as other international treaties.
5. The 14 years between now and 1997 would be used to prepare for the Chinese takeover. After 1997 the "system" would remain unchanged. The Hong Kong dollar would remain in being and would continue to be freely exchangeable. The people of Hong Kong would form their own administration, and laws would remain unchanged apart from those which had a "colonial taint".
6. British and other foreign investment would be protected and other measures taken to preserve confidence.
7. Despite what he had said about laws remaining unchanged, Yao Guang went on to say that the new administration would have to be based on laws and regulations which would be enforced at the time of the takeover. They would be made publicly available in good time beforehand. Yao Guang said that he was confident that full agreement would be reached with the UK. He said that he was sure that most foreign investments would remain in Hong Kong after the takeover, or "creep back" shortly afterwards. concluded by assuring the Icelanders that the People's Republic enjoyed great friendship with the United Kingdom.
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MKK040/5
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