8. THE AMBASSADOR REPLIED THAT HE UNDERSTOOD THE CHINESE POSITION, HE HAD HEARD IT HIMSELF FROM LI PENG. AT THE SAME TIME THE BRITISH GOVERNMENT'S POSITION HAD BEEN MADE CLEAR. ONE OF THE THINGS MRS THATCHER HAD SAID WAS THAT WE MUST TAKE HONG KONG FEELINGS SERIOUSLY. LI PENG HAD SAID TO HIM AFTER THEIR MEETING IN PEKING ON 14 JULY THAT HIS (THE AMBASSADOR'S) ASSESSMENT SEEMED TO BE MORE
DOWN-BEAT THAN IT HAD BEEN IN JUNE. HE (THE AMBASSADOR) HAD REPLIED THAT THAT WAS BECAUSE HE HAD BEEN IN HONG KONG IN THE
INTERIM: HE HAD BEEN STRUCK BY THE STRENGTH AND GENUINENESS OF LOCAL FEELING. STABILITY AND PROSPERITY WERE OF COURSE FUNDAMENTAL. IT WAS PRECISELY BECAUSE OF OUR CONCERN FOR AND COMMITMENT TO STABILITY AND PROSPERITY THAT THE BRITISH AND HONG KONG GOVERNMENTS HAD TO TAKE ACCOUNT OF HONG KONG FEELINGS. THE BRITISH AND CHINESE SIDES MUST CERTAINLY COOPERATE BECAUSE MUCH WAS AT STAKE. THE
PROJECT WAS THE BIGGEST JOINT VENTURE IN CHINA AND THE BRITISH GOVERNMENT HAD WORKED EXTREMELY HARD TO FACILITATE AGREEMENT ON IT.
9. ZHOU REPEATED THAT IF THE ANTI NUCLEAR MOVEMENT STIRRED UP
FEELING IN HONG KONG, THERE WOULD BE A VERY ADVERSE EFFECT ON HONG
KONG'S FUTURE STABILITY AND PROSPERITY. HONG KONG PEOPLE MUST KNOW
THAT. THE TWO SIDES MUST THEREFORE TAKE ALL POSSIBLE STEPS. THE
AMBASSADOR SAID HE WAS ABOUT TO VISIT HONG KONG, AND HE WOULD FORM
HIS OWN IMPRESSION. ZHOU SAID THAT HE DID NOT WANT TO SEE
**UNWELCOME RESULTS'' BEFORE THE QUEEN'S VISIT. THE AMBASSADOR
SAID HE WAS NOT EVEN THINKING IN THOSE TERMS.
10. SEE MY 21FT'S NOT TO DTI, PARIS, OR BTC HONG KONG) FOR
DISCUSSION OF THE GOVERNORS FORTHCOMING VISIT TO PEKING AND OF
GORBACHEV'S VLADIVOSTOCK SPEECH.
THOMSON
YYYY
PEHPAN 8056
GUANGDONG
[COPIES SENT TO NO 10 DOWNING STREET]
ADDITIONAL DISTRIBUTION
GUANGDONG NUCLEAR
PB
LIMITED
HKD
FED
NED TRED
PUSD(MR CROWLEY) WED
PS/MR RENTON PS/PUS
SIR W HARDING MR DAUNT
MR WILSON MR SLATER
3 CONFIDENTIAL