VISIT OF MALAYSIAN FOREIGN MINISTER

FUTURE OF HONG KONG

POINTS TO MAKE

1.

Since talks were agreed in September 1982 several meetings held with Chinese with common aim of preserving Hong Kong's stability and prosperity.

2.

Second phase of talks began in Peking on 12 July. Useful and

constructive. Reconvened on 25 July. HMG's aim remains to seek a

solution acceptable to the British and Chinese Governments and to

people of Hong Kong.

3.

Content of talks confidential. No time-table for them has

been set. We are getting on with them as quickly as we can.

Meanwhile important nothing said or done to damage confidence in

Hong Kong. We do not regard outcome of talks prejudged by anything

said outside them.

4.

Views of people of Hong Kong will continue to be taken fully into account at all stages. These made known through variety of

official and unofficial channels. Hong Kong's Executive and Legislative Councils play valuable role in this context.

5.

Hong Kong Governor attending talks as and when necessary as member of British delegation. Attended on 12/13 July and for

current session.

6.

Chinese propaganda has floated idea of Hong Kong as special Administrative Region of China, with Hong Kong ruled by Hong Kong people.Seeking to persuade people this can be done without major

changes to existing systems. Although some Hong Kong people

attracted to idea, most believe it would not work without some

guarantee that Chinese, would not interfere, as has been provided hitherto by British administration. Moreover Hong Kong's prosperity

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