CONFIDENTIAL
065
MDHIAN 1342
TO DETAILED TALKS THE UK AND CHINA COULD MOVE AHEAD. WE COULD ENGAGE IN DISCUSSIONS ON SPECIFICS RATHER THAN GENERAL ARGUMENTS.
THE PRESIDENT:
9. I HAVE BEEN DEALING WITH HONG KONG SINCE 1989 WHEN I BEGAN MY WORK AT THE CENTRE.
10. I HAVE MET WITH MR HURD, MR HEATH, MRS THATCHER, GOVERNOR WILSON, AND OTHER OFFICIALS ON THIS MATTER.
11. FROM MY MEETINGS WITH THEM I BELIEVED IT WAS AN ASPIRATION OF BOTH SIDES THAT THERE SHOULD BE A HAND OVER LEADING TO A STABLE AND PROSPEROUS HONG KONG. THIS WAS BEFORE LAST OCTOBER. THIS IS A MOST IMPORTANT POINT.
12. I HAVE ALWAYS FELT THAT THE HONG KONG QUESTION IS LEFT OVER FROM HISTORY. THE ISSUE IS BETWEEN BRITAIN AND CHINA. THERE SHOULD BE NO INVOLVEMENT OF THIRD PARTIES. ALTHOUGH HONG KONG IS AN INTERNATIONAL CENTER, IT SHOULD NOT BE AN INTERNATIONAL ISSUE.
13. SHANGHAI WILL NEVER TAKE OVER THE ROLE OF HONG KONG WE ALL THINK THIS. THEY ARE DIFFERENT REGIONS WITH DIFFERENT CHARACTERISTICS. THIS IS AN IMPORTANT POINT.
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14 I THINK THE FUTURE PROSPERITY OF HONG KONG WILL BENEFIT NOT ONLY HONG KONG BUT ALSO CHINA AND BRITAIN BECAUSE OF BUSINESS INTERESTS. IT WAS MY FEELING THAT THIS WAS BOTH OUR POSITIONS UNTIL GOVERNOR PATTEN'S PROPOSALS WERE PRODUCED LAST YEAR WITHOUT
PRIOR DISCUSSIONS.
15. IT IS NOT TRUE THAT CHINA IS ADDING NEW CONDITIONS. IT IS WORKING ON THE ''DECLARATION'', THE ''BASIC LAW'', AND THE EXCHANGE OF LETTERS BETWEEN THE FOREIGN MINISTERS. IN THE CONSTRUCTION OF THE BASIC LAW THE OPINIONS OF THE BRITISH SIDE WERE SOLICITED.
16. LESS THAN TWO MONTHS AFTER I CAME TO THE CENTRE, MRS THATCHER SENT A SPECIAL ENVOY TO ME WITH A TWO PAGE LETTER.
17. I RECALL CLEARLY THAT IT SAID THAT THERE WOULD BE NOT INTERNATIONALISATION OF THIS ISSUE. IT ALSO SAID THAT BECAUSE OF WORLD WIDE CHANGES FOR INCREASED DEMOCRACY THE NUMBER OF ELECTED MEMBERS OF THE ''LEGCO' SHOULD BE INCREASED FROM 10 TO 20. IT WAS BECAUSE OF THIS LETTER FROM MRS THATCHER THAT WE AGREED TO INCREASE
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CONFIDENTIAL