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BACKGROUND NOTE ON THE FUTURE OF HONG KONG

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The Prime Minister visited China and Hong Kong in September 1982.

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During her visit to China, the first ever by a British Prime Minister in office, one of the subjects discussed was Hong Kong. The following statement was issued after a meeting between Mrs Thatcher and Chairman Deng Xiaoping on 24 September:

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"Today the leaders of both countries held far-reaching talks in a friendly atmosphere on the future of Hong Kong. Both leaders made clear their respective positions on this subject.

They agreed to enter talks through diplomatic channels following the visit with the common aim of maintaining the stability and prosperity of Hong Kong".

Meetings in Peking to follow up the Prime Minister's visit began soon afterwards and are continuing. On 1 July the following statement was issued in Peking, London and Hong Kong:

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"Following the discussions between the leaders of the two countries in September 1982 and subsequent useful exchanges, it has been agreed that a second phase of the talks on the future of Hong Kong will begin in Peking on 12 July 1983".

As part of the second phase, talks were held in Peking on 12/13 July, 25/26 July, 2/3 August, 22/23 September and 19/20 October. The following statement was issued there on 20 October.

It was

"The Chinese and British sides held useful and

constructive talks on October 19th and 20th. agreed that the next round of talks will be held on

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