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SECRET

Redacted

under FOI exemption 27(1)(a)(c)(d)

BRITISH EMBASSY,

PEKING.

The Rt Hon Sir Geoffrey Howe QC MP etc etc etc

Foreign and Commonwealth Office LONDON SW1

12 December 1983

Sir

THE HONG KONG NEGOTIATIONS

1. I shall be leaving Peking later this month and handing over

my task as leader of the British delegation to the Sino-British

talks on the future of Hong Kong to the next Ambassador. In this

despatch I review the negotiations to date and assess their

prospects.

Retrospect

2.

Although there was a long prelude, from 1979-1982, in which

our concern over Hong Kong's future grew and from time to time we

broached the issue with the Chinese, agreement for talks was not

reached until the Prime Minister's visit to Peking in September

1982.

She and Deng Xiaoping then approved a joint statement to

the effect that the two sides would hold talks through diplomatic

channels with the common aim of maintaining the stability and

prosperity of Hong Kong. In one form or another the talks have

now lasted well over a year. They have proved very difficult,

which is not surprising, given the historical background, the

differing political systems represented by the two sides and,

over this issue at least, their great disparity in strength.

But

a further and major complicating factor has been the difference

in approach.

SECRET

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