TNAG-0580-FCO40-713-UK-policy-on-status-of-Hong-Kong-1976 — Page 110

CONFIDENTIAL

2

6.

(c)

(a)

He

listing the dangers of any permanent trade representation and visiting Russian vessels. also spoke along expected lines about the need to prevent the KMT engaging in subversive activities here;

Li

that the Portuguese did not give up liacau. apparently made an analogous reference to the 70- year occupation of Portugal by Spain, during the whole of which period the Tortuguese flag never ceased to fly in Macau. The inference was presumably that political events within Fortugal (e.g. acceptance of a pro-Soviet communist line) need not be decisive in determining the relationship between Macau and China;

that Britain continued to want to keep long Kong. Li apparently was arguing that it was unlikely that Britain would decide to give up Hong Kong since he believed Hong Kong to be more valuable to Britain than it was to China.

Stanley IIO was speaking in categoric terms, but those who know him say that he is always inclined to put a gloss on things. For example, in dealing with the factor in (b) above, he referred in approving terms to the present Governor, and how important it was to maintain policies broadly along the lines of the present Governor's. IIO's gloss on the reference to the 70-year occupation of Portugal by Spain was that a 1.1 Portuguese boy could declare himself Governor of Macau !

7.

One other point of some interest is that when questioned by the businessmen at the Fok dinner party, 1 Chun- sheng said that even though China did not recognise the treaties between Britain and China, she would have regard to the date 1997. When it arrived, it was not certain that China would

luch vold wish to regain control of Hong Kong immediately. depend upon the precise situation obtaining at that time, bul if China did decide to recover Fong Kong, it would be by

Li was asked if negotiation with the British Government.

there was any difference between the New Territories and the remainder of long Kong and he replied that Hong Kong world obviously not be viable without the llew Territories and that the

ritish would consequently be unlikely to negotiate a separate

Li also said t settlement for only part of the territory.

there was a further difference which had to be taken into account by investors. The Chinese Government would take into account the differing lease terms which had been issued by the British in ilong Kong.

8.

There may not be very much that is new in the above but it is of some significance that the local communists are giving these reassurances to local businessmen about the safety of their present and projected investments. The report also

/contd....