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PART IV
Recommendations for the Prime Minister's Visit to Peking
34. In her talks with Chinese leaders about Hong Kong the
Prime Minister's main objectives should be:
(a)
(b)
(c)
to secure Chinese agreement that negotiations about the future should begin very soon on a basis acceptable to both sides, and that this agreement be registered in a joint statement in terms which will strengthen confidence
in Hong Kong;
failing this, to ensure as far as possible that any public
statements. made from the Chinese side during or after the
visit represent a sufficient step forward to maintain
confidence in Hong Kong;
throughout the discussions and the follow up, to avoid
a damaging confrontation with the Chinese.
35.
Much will depend on how the Chinese play their hand during
the talks. But the evidence suggests strongly that the Chinese
will assert that:
(i)
the whole of Hong Kong is Chinese territory. This
is to them a matter of principle and Chinese
sovereignty must be 'recovered';
(ii)
Subject to this, they wish to preserve the
prosperity and stability of Hong Kong;
(iii)
Their present thinking is that this could be
achieved by making Hong Kong a 'Special Administrative
Region' of China largely run by Hong Kong Chinese
under a regime which would preserve the capitalist
system, existing law etc. Some British civil
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