SECRET
Prime Minuter's talles wat Lubbers and chancellor Kohl, 19-21
September 1983
[DEFENSIVE]
with Mr.
POINTS TO MAKE (CHANCELLOR KOHL)
1. Lady Young/Mr Rifkind briefed Dr Mertes during visit to London
12-13 September.
2. Second (ie more detailed) phase of talks began in July. Will
reconvene 22/23 September after seven week recess. Chinese
delegation led by Vice Foreign Minister Yao Guang, British
delegation by HMA Peking. Governor of Hong Kong participating as
appropriate on British side.
3. Content of talks confidential. Atmosphere generally friendly though Chinese line on substance tough throughout. We have given nothing away.
4. Our aim is to seek a settlement acceptable to Britain, China and
people of Hong Kong. Their views being taken fully into account.
Made known to us and Governor through many channels. We are in close
consultation, through the Governor, with Hong Kong's Executive
Council (EXCO). Mr Luce to visit Hong Kong 24-29 September.
5. Chinese propaganda has floated idea of Hong Kong as (Special
Administrative Region (SAR) under Chinese constitution, with
considerable autonomy and functioning essentially as it does now. Propaganda campaign aimed at undermining our position. Party General Secretary, Hu Yaobang, told Japanese reporters on 15 August
that China would recover sovereignty over Hong Kong on 1 July 1997.
He gave erroneous impression. We have conceded nothing.
Evidence
6. Most people in Hong Kong sceptical of this SAR idea. suggests Chinese have not thought through most detailed issues involved. They seem to assume that by saying Hong Kong will continue to be financial/commercial centre or that currency will
ARADTIM