GR 600
CONFIDENTIAL
CONZDENTIAL
EM HONG KONG 07095OZ NOV 84
TO PRIORITY FCQ
TELEGRAM NUMBER 3401 OF 7 NOVEMBER
INFO PRIORITY PEKING
HKK 040/57
RECEIVED IN BEGISTRY
TOP CORN
FUTURE OF HONG KONG: PRIME MINISTER'S VISIT TO PEKING.
NOV 1984
DESK OFFICER INDEX
PA
v
1. A VERY IMPORTANT ASPECT OF THE PRIME MINISTER'S VISIT TO
PEXING TO SIGN THE AGREEMENT WILL BE THE IMPRESSION WHICH IT
CREATES IN HONG KONG. THROUGHOUT THE NEGOTIATIONS WE EMPHASISED,
BOTH IN PUBLIC AND IN THE DISCUSSIONS WITH THE CHINESE, THAT
OUR CONCERN WAS FOR THE MAINTENANCE OF THE STABILITY AND PROSPERITY
OF HONG XONG AND THE PRESERVATION OF THE FREEDOMS AND LIFESTYLE OF
THE PEOPLE WHO LIVE HERE. WE SUCCESSFULLY RESISTED CHINESE PROPOSALS
FOR WORDING IN THE AGREEMENT WHICH WOULD HAVE LAID EMPHASIS ON THE
PROTECTION AND PROMOTION OF BRITISH ECONOMIC INTERESTS WHICH WOULD HAVE SUGGESTED THAT THIS WAS AMONG THE UK'S MAIN OBJECTIVES: THE
ONLY REFERENCE TO THIS POINT IN THE DRAFT AGREEMENT IS IN PARA 3(9)
OF THE JOINT DECLARATION WHICH SAYS THAT THE SAR MAY ESTABLISH
MUTUALLY BENEFICIAL ECONOMIC RELATIONS WITH THE UK AND OTHER COUNTRIES, WHOSE ECONOMIC INTERESTS IN HONG KONG WILL BE GIVEN
DUE REGARD'
30
REGISTRY Action Taken
•
2. I CAN WELL UNDERSTAND THAT THE PRIME MINISTER WILL WISH TO
TAKE THE OPPORTUNITY OF HER PEKING VISIT TO GIVE A FILIP TO SINO- BRITISH RELATIONS GENERALLY, AND TO SINO-BRITISH TRADE IN PARTICULAR. IF THERE ARE PROJECTS, CONTRACTS OR AGREEMENTS WHICH ARE LIKELY TO MATURE AT THE TIME WHEN SHE WILL BE IN PEKING I SHOULD CERTAINLY SEE NO OBJECTION TO THEM BEING SIGNED BY HER, OR IN HER PRESENCE. IT WILL HOWEVER BE EXTREMELY IMPORTANT, AGAINST THE BACKGROUND DESCRIBED ABOVE, TO AVOID GIVING THE IMPRESSION THAT ANY AGREE- MENTS OR CONTRACTS WHICH MIGHT BE SIGNED ARE THE QUID PRO QUO FOR THE HONG KONG AGREEMENT AND THAT HMG ARE SOMEHOW BEING REWARDED** BY THE CHINESE FOR THEIR COOPERATIVE ATTITUDE OVER HONG KONG. IF
THIS IS TO BE AVOIDED THE MAIN EMPHASIS OF THE VISIT WILL HAVE TO
BE ON THE SIGNATURE OF THE AGREEMENT, AND ANY TRADE OR ECONOMIC
ASPECTS SHOULD TAKE SECOND PLACE.
1
3. THE GUANGDONG NUCLEAR PROJECT IS A CASE IN POINT. I DO NOT UNDERESTIMATE THE IMPORTANCE OF THE PROJECT TO BRITISH INDUSTRY AND THERE WILL BE AN UNDERSTANDABLE WISH TO TRY TO CONCLUDE THE
NEGOTIATIONS IN TIME FOR SOMETHING TO BE SIGNED DURING THE PRIME
MINISTER'S VISIT. THE HONG KONG CONSIDERATIONS ARE DIFFERENT. THERE IS LITTLE ENTHUSIASM FOR THE PROJECT HERE. ON THE CONTRARY, THERE IS ANXIETY ABOUT THE SAFETY ASPECTS, A CONCERN THAT HONG KONG CONSUMERS MAY HAVE TO PAY TOO HIGH A PRICE FOR THE ELECTRICITY PRODUCED AND A BELIEF THAT GEC WOULD NOT BE IN THE RUNNING FOR THE TURBINE CONTRACT IF IT WERE NOT FOR THE HONG KONG CONNECTION.
THERE IS THEREFORE A STRONG RISK THAT TO HIGHLIGHT THE GUANGDONG
CONFIDENTIAL
/PROJECT