SECRET Covering TOP SECRET
Flag C ANNEX FOLIO 1.
HIK
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1975
1978
this moment to invite Sir Murray MacLehose.
For reasons explained
in the Governor's Top Secret Letter of 2 January, it is just possible that they were under the mistaken impression that they were responding to a tentative approach from him. Whatever their precise motives, the invitation certainly fits into the pattern of steadily strengthening official links between the Chinese and Hong Kong authorities which has taken place over the last few months. You will recall that this process began with the upgrading of the NCNA office in Hong Kong and the unprecedented call by the new Director (whose rank equates with that of a Vice-Minister in Peking) on the Governor. Further indications have included the invitation to the Governor to attend the Chinese National Day reception, and, most recently, the call which the Chinese Minister of Foreign Trade paid on Sir Murray MacLehose during his three day visit to Hong Kong last month the first time a Chinese Minister has called on a Governor since 1949. Friendly gestures of this kind have been accompanied by increased political co-operation between the Hong Kong authorities and those in China; by growing Chinese investment in Hong Kong;
and by hints at all levels that the Hong Kong "problem" will not be ripe for settlement for many years to come. All these developments reflect the importance which the Chinese attach to Hong Kong in the context of their modernisation programme and, more generally, the excellent state of Sino-British relations.
4.
Against this fast-moving background, there is little risk that local opinion would react adversely to a visit by the Governor to Peking. Indeed, as Sir M MacLehose has remarked (Hong Kong telegram No 1463), it is becoming almost abnormal for him not to have visited China. It would also be very difficult to decline the invitation without giving offence to the Chinese leadership. It therefore seems right to accept it in principle. But the content, timing and public presentation will need very careful consideration. These aspects are dealt with below:
(a)
Content
The Governor will clearly need to be ready to discuss matters normally handled locally by the Hong Kong
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