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HKK 040/11
LORD SHAWCROSS'S CALL ON MR LUCE, 10.15 AM WEDNESDAY 7 SEPTEMBER
1983 : FUTURE OF HONG KONG
POINTS TO MAKE
1.
You saw Mr Giffard in April. Since then, second, more detailed phase of Sino-British talks held on 12/13 July, 25/26 July
and 2/3 August. Will resume 22/23 September. Content confidential.
2. Chinese delegation led by Vice Minister Yao Guang, British delegation by HMA Peking. Governor of Hong Kong participating as appropriate on British side. Although talks bilateral between
Britain and China, we are in close consultation through the Governor
with Hong Kong's Executive Council.
Good atmosphere at second phase of talks, though Chinese line remains tough.
3.
4. We have concentrated on trying to educate Chinese about
complexity of Hong Kong and vital issue of confidence there.
Confidence linked to existing form of administration and systems.
We do not think Chinese fully understand Hong Kong's complexities,
and the basis for confidence, eg in the HK dollar.
5.
Chinese propaganda has floated idea of Hong Kong as Special
Administrative Region (SAR) under Chinese constitution. Propaganda
campaign recently stepped up. eg Party General Secretary Hu Yaobang
told Japanese reporters on 15 August that China would recover sovereignty over Hong Kong on 1 July 1997. Hu gave impression that
we had already conceded on sovereignty.
we remain flexible
Not so,
in our approach that we have conceded nothing.
6.
Most Hong Kong people highly sceptical of what they have heard
of China's Hong Kong plan. Evidence suggests Chinese have not thought through most of detailed issues involved. They seem to
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