TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 102

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00 FCO

00 HONGKONG

GR 1839

SECRET

FM PEKING 305707Z MAR 79

TO IMMEDIATE FCO

TELEGRAM NUMBER 345 OF 30 MARCH 79

INFO IMMEDIATE HONG KONG

53

604

Dr Cortazzi.

HKK 026/3.

REZIVLD

GISTRY RO 2 3 APR 1979

INDEX

PA

No 223.4

J23.48

PERSONAL FOR CORTAZZI

YOUR TELNO 212: NEW TERRITORIES LEASES

AT HIS MEETING WITH THE GOVERNOR ON 29 MARCH, DEN XIAOPING LAUNCHED STRAIGHT INTO THE ISSUE OF THE FUTURE OF HONG KONG. HE SAID THAT CHINA HAD A CONSITENT POSITION THAT SOVEREIGNTY OVER HONG KONG LAY WITH CHINA. BUT HE ACKNOWLEDGED THAT HONG KONG HAD ITS OWN SPECIAL STATUS.

1997 WAS STILL 18 YEARS AWAY, AND DISCUSSIONS MIGHT BE HELD SEFORE THEN ACCORDING TO THE CIRCUMSTANCES PREVAILING, ANY SOLUTION WOULD HAVE AS ITS PREREQUISITE THAT HONG KONG WAS PART OF CHINA. NEVERTHELESS IT COULD BE SAID WITH CERTAINTY THAT THE DISCUSSIONS WOULD RESPECT THE SPECIAL STATUS OF HONG KONG. IN VIEW OF THE CONCERN OF PEOPLE ABOUT INVESTMENT HE WISHED TO GIVE AN ASSURANCE THAT EVEN WHEN THERE WAS A POLITICAL SOLUTION, IT WOULD NEVER AFFECT INVESTMENTS. DENG THEN DREW AN ANALOGY WITH TAIWAN AND MACAO AND, ON THE FORMER, AFFIRMED THAT CHINA WOULD RESPECT TAIWAN'S SPECIAL STATUS AND WOULD NOT CHANGE ITS SOCIAL SYSTEM OR AFFECT ITS LIVING STANDARDS. THE ISLAND COULD ENJOY LOCAL AUTONOMY AND HAVE ITS OWN ARMED FORCES ALTHOUGH IT WAS PJCT OF CHINA. BUT THERE COULD NEVER BE TWO CHINA'S OR ONE AND A HALF CHINA'S.