GRS 950

CONFIDENTIAL

CONFIDENTIAL

CORRECTED

FROM PEKING 19183OZ DEC 84.

TO IMMEDIATE FCO

TELEGRAM NUMBER 3047 OF 19 DECEMBER

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INFO !

MMEDIATE HONG KONG

IND..

PRIME MINISTER'S VISIT: MEETING WITH CHAIRMAN DENG XIAOPING:

19 DECEMBER: HONG KONG ASPECTS

SUMMARY

1. DENG CHARACTERISED THE AGREEMENT AS BEING OF HISTORIC SIGNIFICANCE. CHINA ALWAYS HONOURED ITS COMMITMENTS. MAINENANCE OF HONG KONG'S PROSPERITY ACCORDED WITH CHINA'S

INTEREST IN MODERNISING IT ECONOMY.

DETAIL.

2.

AFTER EXCHANGE OF COURTESIES, DENG SAID THAT THE ACHIEVEMENT OF THE LEADERS OF CHINA AND BRITAIN WAS OF HISTORIC IMPORTANCE. A FAILURE TO SOLVE THE HONG KONG QUESTION WOULD HAVE CAST A SHADOW OVER THE RELATIONS BETWEEN THE COUNTRIES. THERE WAS NOW A VERY BRIGHT FUTURE.

3. THE PRIME MINISTER AGREED. DURING THE PAST TWO YEARS OF WORK WE HAD TAKEN PEOPLE ALONG WITH US AND TAKEN ACCOUNT OF THEIR NEEDS. CHAIRMAN DENG HAD RECEIVED MANY HONG KONG GROUPS AND THEY HAD BEEN ABLE PERSONALLY TO HEAR HIS ASSURANCES AND TO LET HIM KNOW OF THEIR WISHES. MANY

HONG KONG PEOPLE HAD VISITED LONDON TO SEE HER. IF PEOPLE WERE TAKEN ALONG IT MADE MATTERS FAR EASIER TO SETTLER SATISFAC-

ORILY IN THE END.

THE PRIME MINISTER SAID THAT THE STROKE OF GENIUS IN THE NEGOTIATIONS HAD BEEN THE CONCEPT OF ONE COUNTRY, TWO SYSTEMS' IT WAS THE KEY THAT HAD UNLOCKED THE FUTURE. DENG SAID THAT IF THE CONCEPT WAS OF FAR-REACHING SIGNIFICANCE THE CREDIT SHOULD GO MARXIST HISTORICAL DIALECTICS, OR TO **SEEKING TRUTH FROM THE FACTS''. TO SOLVE THE HONG KONG QUESTION PEACEFULLY AN ANSWER WHICH SATISFIED CHINA, BRITAIN AND THE PEOPLE IN HONG KONG HAD HAD TO BE FOUND. THE IMPOSITION OF SOCIALISM ON THE TERRITORY WOULD NOT HAVE BEEN ACCEPTABLE TO BRITAIN OR TO THE PEOPLE OF HONG KONG. NOR, EVEN IF IT HAD BEEN ACCEPTABLE, WOULD IT HAVE PRESERVED HONG KONG'S PROSPERITY. THE SAME CONSIDERATION APPLIED TO

• HAD RAIWAN. THE CONCEPT OF ONE COUNTRY, TWO SYSTEMS

IN FACT BEEN DEVISED ORIGINALLY TU SOLVE THE TAIWAN AND NOT THE HONG KONG QUESTION. IT HAD FLOWED FROM CHAIRMAN YE JIANYING'S WINE POINT PROPOSAL IN 1980 FOR TAIWAN. CHINESE LEADERS WERE DEEPLY CONVINCED THAT IT COULD WORK AND THE TWO YEARS OF SINO-

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CONFIDENTIAL

/-BRITISH

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