TNAG-0753-FCO40-957-Future-of-Hong-Kong-1978 — Page 46

SECRET

HKK 040/1

RECEIVED

NO. 31

RE

PA

Action Istron

No.

(121

with Pusi

A

B

Outa chad

JILL PURD

BRITISH POLICY TOWARDS HONG KONG IN THE 1980s

1. Lord Goronwy-Roberts agreed in August that officials should start work on a Planning Paper covering policy towards Hong Kong over the next ten years or so (Mr Jones' minute of 4 August). The Department have now produced an outline draft for this paper following discussion with Mr Murray and myself, and with the Political Adviser in Hong Kong. As requested by Lord Goronwy-Roberts the draft covers the possibilities for promoting further social and political progress in Hong Kong as well as questions connected with the New Territories Lease due to expire in 1997. (The significance of recent British Ministerial visits to China, also mentioned by Lord Goronwy-Roberts have been dealt with in separate submissions by Far Eastern Department.) I think the draft is generally on the right lines, and I agree that it would be best to delay drafting on the timing of a possible approach to China and the tactics which might be employed until after the main body

of the paper has been completed.

They

2. On this last point, the Secretary of State has expressed the view that we should be in no hurry to approach the Chinese about the future of Hong Kong (Mr Walden's minute of 2 August).

I am

sure that this is right. But events have been moving quickly in Hong Kong over the past few months. The Chinese have let it be known in Hong Kong that Chinese interests will require the

maintenance of the status quo for the foreseeable future. have also backed their words with concrete actions in the form

of substantial investment in Hong Kong, cooperative ventures with Hong Kong companies and the development of new air and sea communica- tions links between Hong Kong and China. All this has helped to create a new climate of confidence in the future of the Colony. The 1997 date will however fairly soon begin to have practical implications unless action is taken to remove its legal effects. A solution will require the cooperation of the Chinese and an early Chinese invitation to discuss the 1997 question cannot be ruled out. We should be prepared for this. Moreover, the Secretary of State is likely to visit China next year and

SECRET

/Hong Kong