2/2

FILE No

FEH

PART.

STAMI

YEAR

1971

SEC

NB. UP

(N.B. The grading of this jacket must be the same as that of the highest
graded document contained in it. The appropriate upgrading slip must be
affixed when ever necessary.)

CONFIDENTIAL

DEPT.

H.M. DIPLOMATIC SERVICE

• POST

Contents checked

for transfer to

DRO.

Re

(Spd.) GIRL TOO : 7

DOCT 1077

FAR EASTERN DEPT.

FILE No. FEH 2/2

(Part )

TITLE: INTERNATIONAL FUTURE OF

HONG KONG

REFER TO

REFER TO

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DO NOT RETAIN PILES AND PAPERS UNNECESSARILY

RETURN THEM TO REGISTRY FOR BU. OR PA

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TO

NAME

TO

NAME

TO

DATE

DATE

(and dept when necessary) SEE:

(and dept, when necessary)

SEE:

DATE

(and dept. when necessary)

SEE:

3

FCO 21/8/71

CLOS

UNTIL

002

427

+

(N.B. The grading of this jacket must be the same as that of the highest
graded document contained in it. The appropriate upgrading slip must be
affixed when ever necessary.)

CONFIDENTIAL

Registry Address

Room No...871

King Charles Street.

YEAR STAMP

1971

'CS. 41A

2600077

15,000-4/71-806-423

NZEF.

TS 7/1162/46 IV

J AL Morgan Esq FED

FCO

CONFIDENTIAL

RECEIVED IN

[REGISTRY No.51 - 5 JAN 1972

FEH $19

Dear John,

COLONIAL SECRETARIAT

LOWER ALBERT ROAD

HONG KENG

28 December, 1971

AG

Паважува

70

Ence

17. Morgan Is. No Crown in Mr Hervey

Nh

Mar 141

The bannyworn to see

Torea with

THE FUTURE OF HONG KONG

15

uphy

torby's dats ALMugan

Thank you for your letter HKK 4/1 of 3 December. 12 (

So far as ve can see the news of what CHOU En-lai told Malcolm MacDonald
is leaking out in any case on the initiative of the Chinese Government.
For example, you will have seen the little report in 'Nevsveek' of
December 13 (copy enclosed). I therefore think, and the Governor agrees,
that we should leave moderately well alone and mount no specific leaking
operation of our own, In this particular respect Chinese leaks are so
much more credible than our own.

2.

On the other hand ve see every advantage in telling Shell, in strict
confidence, what transpired between Chou and MacDonald. From our point
of view for Shell to invest in a refinery would be a great creator of
confidence far more than leakage of Chou's remarks, so I suggest that
with Shell you need not be quite so cagey.

3.

I think we stand to gain most from leaving some haze over what precisely
Chou said. It will no doubt occur to you that while its implications for
the moment are good, those for 1997 are not. Young people here are
already disturbed about the end of the lease and we certainly do not
want to disturb them further by giving too precise currency to a
statement that they might read to mean that the Chinese Government has
decided to change the status of the Colony by 1997.

4.

The source of Shell's information may be Sir Douglas Clague to whom I
gave a brief account of CHOU E n-lai's remarks to Malcolm MacDonald on
this subject. Clague did not react with any surprise. He said that what
CHOU En-lai had said was what he had always understood. The Governor
thinks that he too probably indicated when he lunched at Shell House in
London, and the question of the refinery came up, that the omens vere as
good as they had ever been, and that MacDonald's talk with Chou had
confirmed this.

LAST PAPER

cc R C Samuel Esq Peking

Your

Aller:

~n ever

(A F Maddocks)

CONFIDENTIAL

THE PERISCOPE

I

F

STRUGGLE ON THE SKI SLOPES

Next year's Winter Olympics in Japan may lack Its star attractions, the
world's topilight Alpine skiers. Avery Brundage, 84-year-old head of the
International Olympic Committee, has restated his adament opposition to
"subsidized" skiers, Last summer, when he lifted a ban no ten top skiers
(for working as paid instructors), the ski world read it as a clear
track. A new letter from Brutninge changed things. Such French aces as
Jean-Noel Augert and Isabelle Mir, as well as Austrie's Karl Schranz
(whose "amateur" salary is put at $80,000 a year), now appear out, and
the Fédération Internationale de Ski is planning a meet in Europe to
rival the Olympics.

NORTH KOREA'S OPENING DOOR

North Korea, like China, appears ready to re- open its doors to American
newsmen. President Kim 11 Sung has told his officials that when the
talks with South Korea escalate to the full-dress stage (so far only Red
Cross-sponsored meetings with Scout have been held), North Korea will
have to admit some US, and other Western newsmen to cover them in
Pyongyang

PRICES AND POLLUTION

Some industrialists seeking above-the guideline price hikes will soon
have an unexpected ally, President Nixon's antipollution chief William
Ruckelshaus. He is expected to lobby the Price Commission for increases
needed to pay for new antipollution programs and equipment.

MORE EGYPTIANS IN RUSSIAN COCKPITS

The Russians have finally yiekled to Cairo's pleading und will train
Egyptian pilots on the missile-armed TU-16 Soviet bombers. A score of
the planes have been in Egypt for some time, and more were fown in this
month. The Russians, however, intended them as a counter to the United
States' Méditerranean-based Sixth Fleet and insisted on full control.
The hombers in Egypt rny Egyptian markings but have been manned by
Russian pilots.

X SOFT WORDS FROM PEKING

A Hong Kong businessman has come back from China with a soothing
message. A Chinese official whose rank insures that he had prior
approval from Peking tokl the businessman that no moves would be made
against Hong Kong or Taiwan for a long time to come, even though the Mao
gov- ernment claims both. Hong Kong, China's main

Newsweek, December 13, 1971

H

source of foreign exchange, is apparently too im portant economically.
The Chinese official re- peated Chou En-lai's statements that Taiwan
would be liberated, but "peacefully." Diplomat. think this reflects the
Chinese view that waiting. no matter how long, is better then hasty
action. It may also indicate a wish to avoid, in some dis- tant,
post-Chiang Kai-shek era, a move by the Taiwanese to set up an
independent country.

TIGHTENING UP AT THE SEC

Staff members at the Securities and Exchange Commission, long rated
among the most free- wheeling bureaucrats in Washington, are keeping a
wary eye on their chairman, William Casey. When he arrived last spring,
Casey was appalled at what he considered lack of organization. Ile has
been recruiting a "whiz kid" tearn of Wali Street lawyers to lighten up
the agency.

BUTTONING THE STIFF UPPER LIP

British forces in bomb-racked Northern Ireland have received quiet
orders from London to stop claiming successes against the Irish
Republican Army guerrillas. The "victory" statements have been producing
fresh waves of IRA bombings and sniping to disprove them. The high
command decided the casualties and darnage to British credibility
weren't worth the effort.

ANOTHER CONNALLY ON THE HORIZON

The political world will soon have another Texas Connally to reckon
with. With Treasury Secre- tary John already a power in Washington,
young- er brother Wayne, a state sennlor in Austin, plans to run for
lieutenant governor. John opposed the move but will back it because, as
one Texas politico put it: "He can't let Wayne loše."

WHO TALKS AT WHOSE SUMMIT

Despite President Nixon's oft-repeated word that he will speak only for
the U.S. in Peking and Moscow, at least one U.S. ally is taking no
cliances. Lendon has told the White House pri- vately that while the
British will give him their views freely in his pre-China summit
meetings, they want to emphasize that they will do their own talking at
their own sumimits.

LBJ WRITES AGAIN

With his Presidential memoirs out of the way, Lyndon Johnson plans
another book. This one, he tells friends, will cover his years as a
wheeling-dealing star in the House and Senate.

9

+

HKK 4/1

A F Maddocks Esq HONG KONG

CONFIDENTIAL

15

Dessakred

3 December 1971

3/12

the

THE FUTURE OF HONG KONG

1. The Regional Director of Shell (Mr Hughes) has told me that he has
heard from a reliable source in Hong Kong (which he would not disclose)
that Chou En-lai had given Mr MacDonald certain assurances about the
future of Hong Kong. He asked whether I could confirm this as it would
greatly affect their decision on whether to invest in a new refinery. I
replied that I understood the subject had been mentioned and that Ir
MacDonald would be referring to it in the articles he intended writing
for the Sunday Times.

2. You will recall that I telegraphed to Peking (POO Tel No 750) saying
that we would see considerable advantage in his including the full
wording but he replied that he would only like to do ao in general terms
(Peking Tel No 1094).

3. On 29 November I asked Kr MacDonald about his articles. He said that
they were not yet completed and that he might not have time to do so
before he left for Afrios (where he will be until before Christmas). He
said that he intended saying staply that the Chinese had indicated that
they did not intend raising the question of the Kowloon lease until
1997.

It may be that when we have seen the form of words he decides to use we
would wish to consider letting the exact wording given to me by P'ei
(PCO Tel No 772) become disore- tely disseminated. I should be grateful
for your preliminary thoughts on this and should you consider it
worthwhile, what method we could use. In any event we should clearly
need to handle it very carefully. We do not wish to foros the Chinese to
take the public stand. I should, incidentally, be grateful for any
indication you may have of what might have been Shell's source.

J▲ L Morgan

Far Eastern Department

CONFIDENTIAL

Copy toi RO Samueć Eng

PEKING

PRIORITY

CYPHER/CAT A

CONFIDENTIAL

R.

R

--

+

TOP COPY

FM HONG KONG 239410Z

CONFIDENTIAL

TO PRIORITY FCO TELNO 875 OF 23 NOVEMBER INFO-PEKING.

FEC3/548/3

+

PEKING TELNO 1172 TO YOU, PARA 6 LAST SENTENCE: SINO-BRITISH

RELATIONS.

I SEE LITTLE ADVANTAGE IN SEEKING FROM THE CHINESE ASSURANCES MORE
FORMALLY BINDING THAN THOSE GIVEN TO MR MACDONALD

AND SERIOUS DISADVANTAGE IN INTRODUCING ANY HONG KONG ISSUES IN

THE PRESENT DISCUSSIONS.

FCO PASS COPY TO HONG KONG GOVERNMENT OFFICE LONDON.

MACLEHOSE

¿COPIES SENT TO PRIVATE SECRETARY NO 10 DOWNING STREET/

DEPARTMENTAL DISTRIBUTION

FED

NNNNN

RECEIVED IN

REGISTRY No. 51

25 NOV 1971

HKKY/1

CONFIDENTIAL

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2 SCIFIENTIAL

CONFIDENT LAL

INWARD SAVING TELEGRAM

FROM SINGAPORE TO FOREIGN OFFICE

(Office of Commissioner-General for South-East Asia)

By Bag

Keep a copy on file

+

copy

each to

R.M.K+ Paling with

hikovering letter

FOREIGN OFFICE AND EKITERALL DISTRIBUTION

Lord Selkirk

No 12 Saving

November 12, 1962

CONFIDENTIAL

R. November 14, 1962.

Addressed to Foreign Office telegram No.12 Saving of November 12.
Repeated for information Saving to:

Washington Delhi

Peking Hong Kong

Following from Malcolm MacDonald.

Both Chen Yi and Chou En-lai spoke to me at length about British-Chinese
rulations. They remarked that these are quite good and friendly, and
that they hope for a steady further improvement in the relations. They
never hesitated to criticise to me British policies in the past and
present with which they disagreed, but they said that we British are
experienced and realistic people who understand better than other
Western nations what is happening in the world in the Twentieth Century
and who in many ways have pursued wise policies.

2. They expressed appreciation of our vote again this year in favour of
China's admission to the United Nations. But they expressed the
"resentment" of the Chinese people at our reservation about Taiwan, They
said that so long as we adopt this attitude towards a territory which is
by rights a part of China, they cannot regard our relations as entirely
good, and they cannot agree (for example) to an exchange of Ambassadors.

3.

Nevertheless, they said they are not too bothered about Taiwan. Chou
En-lai said that this problem has an internal and an external aspect.
Internally, Taiwan is part of China, and it is nobody else's business
how the Chinese deal with it. It is a matter for settle- ment between
the Goverment in Peking and Chiang Kai-shek and his colleagues in
Taiwan, The Chinese Government have a perfect right to deal with Chiang
Kai-shek in whatever way they think proper. The external aspect of the
problem has been created by the Americans' intervention in Taiwan, and
by their support for Chiang Kai-shek. The Chinese Government does not
propose to settle this issue by force. They have been discussing it and
other matters with the Americans for seven years in inter-Ambassadorial
talks, with no results whatever so far; and they are prepared to
continue these talks if necessary for another seven years. They will be
patient because they believe that the majority of the Taiwanese wish to
be re-united with China, and that they will express that wish
effectively in due course, In the meantime, let the talks with the
Americans go on. But the Chinese cannot deprive themselves of their
right to take whatever action, including force, they deem right in their
dealings with Chiang Kai-shek, since this is an internal question for
themselves to decide.

A The Chinese

CONFIDENTIAL

1

CONFIDENTIAL

apore telegram No. 12 Saving to Foreim Office

-2-

The Chinese are grateful to Britain and France for having made it clear
that they will not support or approve any attempt by Chiang Kai-shek to
invade the mainland. I pointed out to Chou E- lai and Chen Yi that they
have recently received assurances from the Americans also that they are
using their influence in Taiwan to discourage Chiang Kai-shek from any
unprovoked attempt, and that they are telling him that he will receive
no support from them in such circumstances.

5. Both Chou En-lai and Chen Yi said that one expression of the good
relations between Britain and China is the peaceful relation- ship
between the Chinese authorities and the authorities in Hong Kong. Chou
En-lai spoke appreciatively of the Hong Kong Government's efforts to
stop representatives of "the Chiang Kai- shek olique" from using Hong
Kong for improper, violent, purposes against China.

6. They expressed some interest in Greater Malaysia, but in a way which
indicated that they are not particularly concerned about developments
there, Malaya is rather remote from their immediate pre-occupations.
They expressed great concern about developments on the Indian-Chinese
border, and in Laos, South Viet Nam, Korea and Japan (as well as
Taiwan), saying that the Americans are in all those places in one
military form or another, and that in them all they pose a threat to
Chinese national security. said that he would not refer to American
policy in the Philippines Chou En-lai and Malaya, which were further
away. Chinese in Malaya and Singapore, he stated tha Peking's policy is
But as regards the Overseas the same as it is towards those Chinese in
Cambodia, Indonesia and other countries. The Chinese Government have
told the Overseas Chinese in those lands that if they wish to remain
Chinese, they must take no part whatever in the politics of Cambodia,
Indonesia and the other countries respectively. On the other hand, if
those Chinese wish to become citizens of those lands, they should be
loyal citizens, obeying the laws of their country of adoption, and
ceasing to be Chinese nationals in any way.

7. I have already reported in Hong Kong telegram No. 53 what Chou En-lai
said to me about trade between Britain and China. I need only add that
during that part of our talk he used expressions which indicated
resentment against the Russian limita- tions of aid to China, and a
consequent determination by the Chinese that they will not become
dependent on Russia in trade matters. They would like to expand their
trade with other countries with whom they can usefully make exchanges,

8. I have already reported in Hong Kong telegram No. 54 what Chou En-lai
and Chen Yi said to me about Britain's attitude to . the Sino-Indian
dispute.

C

I

F

T

1

0-0-0-0

CONFIDENTIAL

PM 2/2

A F Maddooka Esq ECG IOTA

CONFIDENTIAL

Despatched

197/1

AR

16 November 1971

CHOU M-LAI'S REMARKS ABOUT HONG KONG

1. Many thanks for your letter of 29 October.

2. My thoughts had been very much on the same lines as yours on this
when we had the first account. P'ei's remarks (FC0 tel No 772 to Peking)
have, I think, most usefully cleared up some of the doubts about what
Chou En-lai sotually said.

3. The statement, volunteered by P'ei, was noted verbatim by Hugh Davies
as follows.

3.

"Hong Kong is a place which will be returned to China, but the Chinese
Government had not raised this and it would not be raised for a long
time. The Lease of Kowloon expired in 1997. Chian wished to assure the
British Government not to think of this in connexion with Taiwan."

I do not think we should read too such into Chou's use of the word
"Kowloon". It seems to me simply the shorthand description of the New
Territories Lesne. I do not think that we can draw any useful
conclusions about the Chinese attitude to the seded Territories.

I now snolose a copy of Singapore telegram No 12 Saving of 12 November
1962, reporting Malcolm MacDonald's conversations with Chou In-lai and
Chen X1.

5.

Incidentally, I have since said to P'ei that Maloola KaoDonald's notes
on the interview were not very full and if the Chinese wished to let us
have a fuller account I should be very happy to receive it.

Copy to: Richard Samuel Enq

PEKING

r Laird, HKD7

JAL Morgan

Far Eastern Department

Ino

CONFIDENTIAL

RESTRICTED

Ex. 2/2

A P Maddeoker Esq FONG KO

FEL

Jespatified

FEH 2/2

AR

3/11

3 November 1971

3/500/3

CHINA'S ATTITUDE TO HONG KONG

After Chou En-lai's comment to Mr Maloola MacDonald on 19 October
(Peking tels Nos 1075 and 1076) and Pal's comment to me on 28 October
(paragraph 4 of FCO tel No 772) about China's attitude to Hong Kong, we
looked again at previous Chinese statements. I enclose a minute by
Research Department. Michael Wilford has since pointed out that it did
not include Chen Xi's 1965 remarks about American use of Hong Kong. I
am, therefore, also enclosing a copy of the relevant extract. Bir M
MacLehose did not see the latter and you may wish to show it to him at
some stage.

Copied to:

RC Samuel Esq, PEKING (with enos)

Encat 2

RESTRICTED

J AL Morgan

Far Eastern Department

+

ENPHER CAT A

L

RI PLKING 198830Z

CONFIDENTIAL

X

IMMEDIATE FCO TELHO. 1875 OF 19 OCTODER,

Jest to

ADVANCE COPY

PS to uld. Rey

ری در

Ad. FED

Hd. UND

PERSONAL FOR VILFORD FROM DEDISCH

I

·

MY TELNO, 1975: OR MACIONAL'S MEETING WITH CHOU EN-LA!.

1.

-

!

MR MACDONALD HAS GIVEN ME A FULLER ACCOUNT THẬN THAT RECORDED IN HIS
TELEGRAM TO JOHN MORGAN (MION I DISCOVER ON CHECKING WILL STILL DE OUT
OF THE OFFICE). CHOU EN-LAT INDICATED THAT THE CHINESE THOUGHT THAT 19
MAINTAINING TO THE STATUS OF TAIWAN WAS UNDETERMINED VE NIGHT (A) WISH
TO BE FREE.TO RECOGNISE AN QUOTE INDEPENDENT UNQUOTE TAIWAN WHICH MIGHT
BE SET UP BY THE US AIR JAPAN AFTER THE EXPULSION OF THE NATIONALISTS
FROM THE UN SEMICOLON (8) VỀ MIGHT FOLR THAT IF WE ACKHOLLEEGED CHINA'S
SOVEREIGNTY OVER TA

FEAR

IWAN THIS WOULD HAVE AN EFFECT ON THE STANDING OF HỒNG KÔNG,
D'PHATICALLY THAT THERE WAS NO, REPEAT NO,"MARALLEL TO BE DRAWN DETWEEN
TAIWAN AND HONG KONG, CHINA HAD.NO INTENTION OF SEEKING TO GET HONG KONG
BACK UNTIL THE EXPIRY OF THE NEW TERRITORIES LEASE. PR MACDONALD SAID
SPEAKING PERSONALLY THAT HE DID NOT THALIK THAT QUINA'S FEARS ABOUT OUR
POSSIBLE FUTURE ATTITUDE TO TAIWAN VERE JUSTIFIED AND ALSO DISCOUNTED
ANY CONNECTION IN DRITISH MINDS BETWEEN THE POSITION OF TAIWAN AND HONG
KONG,

+

CHOU SAID

i

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