TNAG-0840-FCO40-1049-Relations-between-Hong-Kong-and-China-1979 — Page 10

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FM FCO 081800Z NOV 79

TO PRIORITY PEKING

TELEGRAM NUMBER 677 OF 08 NOVEMBER

INFO GOVERNOR HONG KONG

FROM FED:

MIPT: PREMIER HUA'S VISIT: CLAIMS

1. LORD CARRINGTON ASKED HUANG HUA FOR AN INDICATION OF THE

CHINESE GOVERNMENT'S READINESS TO NEGOTIATE A SETTLEMENT OF

BRITISH CLAIMS, DRAWING PARTICULAR ATTENTION TO THE PROBLEM OF

PRIVATE CLAIMS.

2.

IN REPLY HUANG HUA AND ZHANG WENJIN DREW A CLEAR DISTINCTION BETWEEN CLAIMS AGAINST PREVIOUS CHINESE GOVERNMENTS (SECURITIES

AND LOANS) AND PRIVATE ASSETS REQUISITIONED BY THE PRESENT

GOVERNMENT. HUANG HUA SAID THAT, AS A GENERAL PRINCIPLE, THE

CHINESE GOVERNMENT DID NOT UNDERTAKE TO PAY UP ON CLAIMS ACAINST

PREVIOUS CHINESE REGIMES. (VICE PRESIDENT MONDALE HAD BEEN TOLD

THIS, AND IT WOULD BE POINTLESS FOR THE US TO MAKE

PAYMENT OF SUCH CLAIMS A CONDITION FOR NEW LOANS TO CHINA). THE

CHINESE WOULD HOWEVER INVESTIGATE, AND INTENDED TO SETTLE, SOME

PRIVATE BRITISH CLAIMS FOR ASSETS SUCH AS FEAL ESTATE, OR

PERSONAL EFFECTS, WHICH HAD NOTHING TO DO WITH PREVIOUS CHINESE

GOVERNMENTS. ZHANG WENJIN SAID THAT, AFTER CHINA'S LIBERATION

THE BRITISH COVERNMENT HAD CONFISCATED SOME CHINESE PROPERTY IN

HONG KONG, AND THE CHINESE GOVERNMENT COULD BE EXPECTED TO RAISE

CLAIMS OF THEIR OWN. LORD CARRINGTON THANKED HUANG HUA FOR HIS

RESPONSE, AND SAID THAT ANY CHINESE COUNTERCLAIMS WOULD PE TAKEN

INTO CONSIDERATION. THE BRITISH GOVERNMENT

FOR THEIR PART DID NOT REPUDIATE

•

DEBTS ACCUMULATED BY PREVIOUS ADMINISTRATIONS, SINCE THIS WOULD

BE CRITICISED BY CREDITORS. THE SITUATION IN CHINA WAS

DIFFERENT BUT HE HOPED THE CHINESE WOULD LOOK AT THIS QUESTION.

CARRINGTON

FILES

FED

CLAIMS D

MR CORTAZZI MR MURRAY

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