TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 100

DWF G 080/30

Original at: Heck Quo

This Copy for:

Quali

Information only / Action on Para(s)

LDX 339/33

LIM 299/39

00 FCO

30 HONG KONG

GR 420

SECRET

FM PEKING 300736Z MAR 79

TO IMMEDIATE FCO

TELEGRAM NUMBER 346 OF 37 MARCH 79

INFO IMMEDIATE HONG KONG

GIA

Жеко

ab

77. 51

2 3 APR 1979

REYSTRY

Tasen

RIDEX

PA

NO £23.4

The Corpazz

A

MIPT

1. CONSIDERING THAT THE PROGRAMME MADE IT IMPOSSIBLE

TO RAISE THE MATTER EARLIER, THE MEETING WITH DENG WAS ON THE WHOLE A GOOD ONE. DENG SHOWED HIMSELF VERY ALIVE TO THE IMPORTANCE OF CONFIDENCE AND INVESTMENT IN HONG KONG.

2. ON THE LONG TERM FUTURE, WHILE REHEARSING THE CLASSIC CHINESE POSITION, DENG WAS CONCERNED TO ALLAY INVESTORS' ANXIETIES, SAYING AT ONE POINT THAT HONG KONG WOULD "MAINTAIN ITS CAPITALIST SYSTEM UNTIL EARLY NEXT CENTURY.

3. ON THE MORE IMMEDIATE QUESTION OF LEASES HE WAS AT

FIRST RATHER BAFFLED BY ENGLISH LEGAL CONCEPTS, BUT EVENTUALLY

APPEARED TO ACCEPT THAT ALL THAT WAS PROPOSED WAS

THE REMOVAL OF THE TERMINAL DATE IN LEASES, THAT THIS

REQUIRED NO CHINESE ACTION AND DID NOT CONFLICT WITH

THE CHINESE POSITION.