1
BACKGROUND NOTE
CONFIDENTIAL
1.
The Baroness Phillips has never, to our knowledge, previously asked
a question on Hong Kong. We understand that this question is the result
of her recent visit to Hong Kong where she was asked why the UK could
not leave Hong Kong with a free Government like we had done in India.
Should Lady Young be asked about this, supplementaries 4, 5 and 6
provide the necessary answers.
2. The delegation to which the Baroness Phillips refers visited Peking
from 21-25 June at the invitation of the New China News Agency. The
purpose of their visit was to reflect their understanding of the views
and anxieties of the people of Hong Kong about the future of the Territory to Chinese leaders. The three Unofficials, Sir S Y Chung.
Miss Lydia Dunn, and Mr Q W Lee had meetings with Chairman Deng Xiaoping and State Councillor Ji Pengfei. The Governor of Hong Kong has described
the visit as a very useful one.
3. The delegation were somewhat brusquely handled by Deng, and certain
Hong Kong papers drew the conclusion that they had been "humiliated".
After pointedly welcoming them only in their capacities as private
individuals, Deng told them sharply that the Chinese Government had
decided the direction, position and policies on Hong Kong's future and
these were firm and unchangeable. On return to Hong Kong the delegation
said they did not think that Deng was convinced that there was a confidence crisis in Hong Kong.
4. Lady Young is generally aware of the background to the future of
Hong Kong.
5. The 18th round of talks took place on 11/12 July. The round was
once again described by both sides as 'useful and constructive'.
The 19th round will be held on 24 and 25 July.
6. A working group was set up during the week of 18 June to consider
documents submitted by the two sides in pursuit of their objective
of reaching agreement as soon as possible on the question of Hong Kong.
The British side is led by Dr David Wilson, Assistant Under-Secretary
CONFIDENTIAL
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