FUTURE OF HONG KONG
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POINTS ON WHICH MR HEATH MIGHT LIKE TO DRAW IN TALKS WITH CHINESE
LEADERS
1.
Encouraging to learn second phase of talks under way. Confident that given agreed commom aim, solution to Hong Kong's future can be reached which will be acceptable to all concerned.
2. Know British Government attach highest importance to maintaining good relations with China. Their publicly stated aim is to seek a solution on Hong Kong's future acceptable to British and Chinese governments and to people of Hong Kong.
3.
Understand importance to China of recovery of sovereignty over Hong Kong. But transfer of sovereignty not constitutionally within HMG's gift. Is a matter for Parliament who are likely to be receptive if suitable package worked out to ensure Hong Kong's future stability and prosperity.
4. Hong Kong as it is now, is thriving, prosperous and viable. In no-one's interests for that to change. Realisation of this in joint Sino-British aim to maintain Hong Kong's stability and prosperity.
5. Question how to devise package in which Hong Kong people will have confidence. Chinese have floated idea of Hong Kong as autonomous Special Administration Region (SAR) under Chinese constitution, but evidence shows that Hong Kong people worried about what they have heard. Must therefore agree arrangements which will reassure them.
6.
Chinese assurances insufficient to show that Hong Kong as SAR of China would function essentially as it does now. Need positive evidence of effective guarantees. Insufficient just to say, eg Hong Kong will continue to be financial and commercial centre or that currency will continue to be internationally tradable.
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