SECRET
directly involving 'British interests' where there could be
more detailed discussion. We stressed need to fill in details
if stability, prosperity and long-term confidence was to be
maintained in Hong Kong and Parliament was to reach a considered
view of Chinese proposals.
With all Commonwealth Representatives
3. Sino-British talks through diplomatic channels agreed
September 1982.
Meetings held Peking.
Common aim of
maintaining Hong Kong's stability and prosperity.
4.
Second, more detailed phase of talks began July.
rounds since. Meetings 19/20 October and 14/15 November
useful and constructive. Next meeting 7/8 December.
Six
Governor
of Hong Kong participating since July.
5. We aim to seek settlement acceptable to Britain, China
and people of Hong Kong. Their views taken fully into account.
In close consultation through Governor with Hong Kong's
Executive Council (EXCO). Their role central.
Governor and
Unofficial members of EXCO visited London again 6-8 October.
to devise package inspiring confidence.
Given agreed common aim, confident this possible.
6.
Centr
Central issue:
7. Meanwhile important nothing said or done to damage
confidence in Hong Kong or atmosphere of talks.
understanding.
Grateful your
8. Chinese propaganda floats Hong Kong as SAR of China, with
considerable autonomy and lifestyle basically unchanged.
9. Most Hong Kong people sceptical of SAR idea. Evidence
suggests details rudimentary and basis for confidence not
grasped by Chinese.
Investors need effective guarantees
2
SECRET