TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 179

CONFIDENTIAL.

APPOINTED A VERY SENIOR MAN TO HEAD THE NCNA OFFICE IN HONG KONG. THE GOVERNOR'S ATTENDANCE AT CHINA'S NATIONAL DAY CELEBRATIONS HAD ALSO BEEN SIGNIFICANT. THE CHINESE HAD BEEN CONSIDERING HOW TO SET ABOUT IMPROVING RELATIONS EVEN MORE.. IN THE PAST, THEY HAD MENTIONED THE POSSIBILITY OF A CHINESE REPRESENTATIVE. THE BRITISH HAD SAID THAT THIS WOULD BE DIFFICULT, AND THE CHINESE HAD LEFT THE MATTER OVER FOR A

LATER STAGE. THEY WERE NOW CONSIDERING WHETHER THE NCNA OFFICE COULD CARRY OUT SOME OF THE DUTIES WHICH THE CHINESE HAD REQUESTED IN THE PAST FOR A DIPLOMATIC REPRESENTATIVE. THEY WOULD BE STUDYING THE QUESTION AND WOULD PUT PROPOSALS TO US.

3. 1 MADE NO SPECIFIC COMMENT ON THE LAST POINT BUT THROUGHOUT OUR DISCUSSION I WAS AT PAINS TO LAY THE GROUND WORK FOR THE ESTABLISHMENT OF A BASIS FOR A CONTINUING DISCUSSION ON HONG KONG AND ITS FUTURE. ! THEREFORE STRESSED THE IMPORTANCE OF HONG KONG TO THE ECONOMY OF CHINA AND, EQUALLY, THE IMPORTANCE OF CONFIDENCE IN THE FUTURE OF HONG KONG AS AN ESSENTIAL PRE- CONDITION FOR ITS INVESTMENT, PROSPERITY AND STABILITY. 1 SAID THAT WE WOULD JUDGE ALL PROPOSALS AGAINST THEIR LIKELY EFFECT ON CONFIDENCE, AND HENCE ON ECONOMIC PROSPECTS."

OWEN.

FILES

FED

HK & GD

PS

PS/LORD GORONWY-ROBERTS

PS/MR LUARD

PS/PUS

SIR A DUFF

MR CORTAZZI MR MURRAY

-2- CONFIDENTIAL