CONFIDENTIAL

BRIEFING FOR SECRETARY OF STATE'S MEETING WITH BRITISH-

CHINESE PARLIAMENTARY GROUP, 15 MAY 1984

I FUTURE OF HONG KONG

POINTS TO MAKE

1. I want to first to bring you up-to-date, in confidence,

on negotiations on the future of Hong Kong following

my visit to Peking and Hong Kong and in preparation for Commons debate.

2. In Peking, I saw Foreign Minister Wu Xueqian, Ji Pengfei (Head of the Hong Kong and Macau Office of the State Council), Premier Zhao Ziyang and Chairman Deng. Major part of discussion devoted to Hong Kong. Atmosphere of talks good. Discussions with Chinese leaders business- like and will give momentum to talks.

3.

Negotiations are continuing and several points of substance still to be resolved. Believe an agreement on the future of Hong Kong may be attainable. Now

working to programme which takes account both of Chinese wishes, our own requirements in terms of Parliament. and need to give adequate time for people in Hong Kong to give views on draft agreement.

4. In Hong Kong on 20 April I made a statement on HMG's approach to the negotiations. Thought it right to do so, without breaching confidentiality, in order to encourage responsible debate in Hong Kong.

5. Statement received relatively calmly in Hong Kong although underlying anxiety and concern. Some regard statement as con- firmation of what was already known: others recognise importance of fact that Hong Kong's likely future has been authoritatively described. On the whole, lifting of veil generally welcomed. Press comment at first generally sober and responsible but now growing more critical.

CONFIDENTIAL

16.

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