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(Defence Puthi Order;

Marc Law

From: JD K Grant

(199

News Department

Date: 21 August 1989

62/1

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Mette PS/M Mande

Mr Gillmore

the Mclaren

Miss Marsie, HKD

Private Secretary

HONG KONG/CHINA: PLA IN HONG KONG

K 1.

201

The Secretary of State has asked (eg your minute of 16 August) about press coverage of our attitude to the stationing of Chinese

troops in Hong Kong after 1997:

2. This issue was firmly established on our public agenda by Sir Geoffrey Howe in his statement to the House on 5 July when he said that "we shall take up with the Chinese Government two matters of special concern

and, even more important, the question of the stationing in Hong Kong of Chinese military forces." This was said against the general background of the declaration of intent in

that statement that "It is of the first importance that the Chinese Government take early, tangible and sustained action to begin restoring confidence in China's intentions towards Hong Kong. We shall be pressing them strongly on this".

3. Press reports of the Secretary of State's meeting with the

Chinese Foreign Minister on 30 July in Paris made clear that the

Secretary of State had raised the stationing of troops with his y opposite number. Those reports also underlined the importance he

attached to China taking action to restore confidence.

4. Although we have chosen our words carefully in talking to the

press, our line has only really been susceptible to the

interpretation that we hoped the Chinese would, at least, restrict

the basis on which PLA troops were to be stationed. Thus, when a

Chinese official was reported as saying that troops would be based

in the territory (The Times' piece of 12 August about which the

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