GRS 300

}

DESKBY 06025OZ

FROM PEKING 060225Z NOV 83

TO IMMEDIATE FCO

(STELEGRAM NUMBER 1149 OF 6/11/83

REPEATED FOR INFO TO IMMEDIATE HONG KONG

FUTURE OF HONG KONG

1. AT HIS BRIEFING FOR EC AMBASSADORS ON 5 NOVEMBER,

M. THORN REPORTED THAT HE HAD SEEN DENG THAT MORNING

AND THAT DENG HAD SPENT SOME TIME ON THE SUBJECT OF HONG KONG.

THE FOREIGN MINISTER, WU, HAD ALSO SPOKEN ON

HONG KONG, THOUGH LESS EMPHATICALLY. DENG HAD ALSO SPOKEN ABOUT

TAIWAN IN THE CONTEXT OF SUPPLIES OF ARMS BY THE AMERICANS

AND PARTICULARLY THE DUTCH.

2. ON HONG KONG, DENG HAD SPOKEN WITH ADMIRATION OF MRS

THATCHER BUT SAID HER IDEA OF ADMINISTRATION WOULD NOT WORK.

HE WANTED TO CONCLUDE THE ISSUE BY SEPTEMBER 1984. HE REJECTED

THE BRITISH COUNTER-PROPOSAL OF CO-ADMINISTRATION. CHINA COULD ACCEPT BRITISH EXPERTS BUT FULL SOVEREIGNTY AND ADMINISTRATION

MUST BE CHINESE. IN CERTAIN CIRCUMSTANCES IT MIGHT EVEN

BE NECESSARY TO TAKE HONG KONG OVER EARLIER THAN 1997. CHINA

AWAS READY TO PERMIT AN INTERMEDIATE PHASE IN WHICH THE PRESENT SYSTEMS WOULD BE RETAINED, BUT THERE COULD BE NO COMPROMISE ON SOVEREIGNTY AND ADMINISTRATION. HONG KONG WOULD

TAIWAN WOULD BE RECOVERED

BE RECOVERED IN 1997 OR EARLIER.

SUONER OR LATER. CHINA HAD TIME.

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