CONFIDENTIAL
(iii) New Territories, leased in 1898. Lease expires
on 30 June 1997. 92% of Hong Kong's total area.
Over 50% of the population live there.
6. Talks on future agreed when Prime Minister visited
China September 1982.
7. Second, more detailed phase began July 1983. Twelve
rounds since, through diplomatic channels inPeking. Latest
round yesterday and today (11 and 12 April).
8.
Atmosphere good. Both sides recognise that talks have
been useful and constructive, and that real progress has
been made. Content confidential. Common aim of maintaining
Hong Kong's stability and prosperity. British aim is to
find a solution acceptable to British Parliament, China and
Government and Hong Kong people.
9. We want best possible deal for Hong Kong people. Our
only return from Hong Kong is that of normal trading partner.
10. We believe continuing stability and prosperity best
assured by:
(a)
(b)
Continuity of systems. (eg legal, financial, commercial,
social).
Minimal outside interference, as now.
11. As Sir G Howe said in the House on 22 March, "at present
continuity is assured by British administration but in 1997
Britain's lease of 92% of the territory comes to an end. In
those circumstances it becomes possible and indeed desirable
to visualise other ways in which continuity can be assured."
CONFIDENTIAL
/12.