FUTURE OF HONG KONG

BACKGROUND

1. The Prime Minister visited China and Hong Kong in

September 1982.

2. During her visit to China, the first ever by a British

Prime Minister in office, one of the subjects discussed was

Hong Kong. The following statement was issued after a meeting

between Mrs Thatcher and Chairman Deng Xiaoping on 24 September:

"Today the leaders of both countries held far-reaching

talks in a friendly atmosphere on the future of Hong Kong.

Both leaders made clear their respective positions on this

subject.

They agreed to enter talks through diplomatic channels

following the visit with the common aim of maintaining

the stability and prosperity of Hong Kong."

3. Meetings in Peking to follow up the Prime Minister's visit

through diplomatic channels began soon afterwards and are

continuing. On 1 July the following statement was issued in

Peking, London and Hong Kong:

"Following the discussions between the leaders of the two

countries in September 1982 and subsequent useful exchanges,

it has been agreed that a second phase of the talks on the

future of Hong Kong will begin in Peking on 12 July 1983."

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