CONFIDENTIAL
DRAFT BRIEF FOR THE SECRETARY OF STATE
HONG KONG
Hong Kong/Chinese Relations
1.
Relations with China over Hong Kong are better
now than at any time since the Communist victory in
China. We have every reason to believe that the Chinese
share our interest in ensuring that this state of affairs
continues. We therefore expect them to take a helpful
attitude towards finding a workable solution to the
problem posed by the termination of the New Territories
lease in 1997, even though formally they do not recognise
the lease. In the meantime, they have deliberately
sought, both by public statements and by such actions as
ensuring increased water supplies and investing in
property in Hong Kong, to maintain confidence in the future
of the Territory.
2. Our own objective and the one which we believe to be
in the best interest of the people of Hong Kong, is to continue to administer Hong Kong for as long as possible.
Chinese kepresentation in Hong Kong
3.
From time to time the Chinese have asked to be
allowed to appoint an official representative in Hong
Kong. Successive British Governments have opposed such an
appointment which it is feared would undermine business
confidence as well as create a possible alternative focus
of loyalty that could make the Territory more difficult
to administer. The Chinese have not seriously pressed
this proposal since 1974, although they did raise it for
the record during Mr Crosland's visit to Peking in 1976,
and it seems unlikely that they will do so on this occasion.
/4.
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Private notes are available after approval.