BACKGROUND
SECRET
B
1.
Lord Shawcross has visited China on several occasions, both
privately and on behalf of Morgan Guaranty for which he is a special
adviser. The Chinese pay him special attention. He has been received in China at a high level and is in close touch with the Chinese Embassy.
The
Secretary of State will therefore wish to take a cautious line.
2.
Lord Shawcross has a keen interest in Hong Kong, where the
Morgan Bank is active. Following a visit there last autumn (during
which he took a line generally helpful to HMG) Lord Shawcross asked
Mr Pym for an assessment of the Hong Kong situation on 17 December
1982.
3. Lord Shawcross was subsequently briefed on Hong Kong by Mr
Giffard on 28 April 1983 before visiting China in May as the guest
of the Chinese People's Institute of Foreign Affairs. During that
visit Lord Shawcross met Assistant Foreign Minister Zhou Nan, who
spoke about Hong Kong's future, and to whom Lord Shawcross pointed up the importance of maintaining confidence in Hong Kong.
4. Lord Shawcross called on Mr Luce on 7 September. He floated the idea of 'internationalising' Hong Kong's Executive Council
within the context of Chinese proposals for an autonomous Hong Kong. Lord Shawcross aired this concept again in his letter to 'The Times'
C of 23 September. The letter otherwise took a generally helpful line
about the basis for confidence in Hong Kong and the need to seek an
agreed settlement on the Territory's future.
:
Hong Kong Department
30 September 1983
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER
SECTION 3 (4) OF THE PUBLIC RECORDS ACT 1958
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