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CONFIDENTIAL

Brief No 5

PRIME MINISTER'S VISIT TO CHINA AND HONG KONG: 18-21 DECEMBER 1984

CHINA

THE FUTURE OF HONG KONG

BACKGROUND

CHINESE ATTITUDE TO THE AGREEMENT SINCE INITIALLING

1.

The Chinese attitude towards Hong Kong since the initialling of the agreement has been characterised by a desire to reassure. They have resisted temptation to treat the agreement publicly as a

triumph. They have been careful not to alarm Hong Kong opinion by

any act or statement that could be construed as interference. The

leadership has issued strict instructions to their supporters in

Hong Kong not to alarm opinion in the territory.

2. In particular the highest Chinese leaders have made reassuring public statements which concede, at least implicitly, that there is suspicion in Hong Kong of their intention to stick to the agreement:

(i) Deng Xiaoping was reported in the People's Daily during October as saying that China would not change its policy on Hong

Kong, and that "our word is our bond".

(ii)

Zhao Ziyang told a Hong Kong Government delegation that

China would implement the Joint Declaration to the letter, and

invited the delegation to publicise his statement.

(iii) The Chinese Foreign Minister told the Standing Committee of

the National People's Congress in November that the agreement is legally binding.

CONFIDENTIAL

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