TNAG-0848-FCO40-1058-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 71

SECRET

CHINESE POSITION AND REQUIRED ONLY THAT THEY DID NOT OBJECT

TO ITS IMPLEMENTATION, DENG APPEARED TO RECOGNISE THAT IT REQUIRED NO ACTION ON THEIR PART. (CUI MINGTANG OF THE MFA

INTERVENED TO STRESS THAT ONLY THE REMOVAL OF THE DATE IN INDIVIDUAL LEASES WAS REQUIRED.) DENG CONCLUDED BY SAYING

THAT THE KEY POINT WAS FOR INVESTORS TO FEEL EASY.

5. IN THE AFTERNOON THE GOVERNOR SAW THE FOREIGN

MINISTER HUANG HUA, HE GAVE HIM AN ACCOUNT OF THE

DISCUSSION WITH DENG IN THE MORNING, EMPHASISING THAT THE

ACTION PROPOSED WOULD NOT CONTRADICT THE CHINESE POSITION

ON HONG KONG AND SAYING THAT DENG HAD NOT APPEARED TO

OBJECT TO THIS POINT. HUANG, WHO DID NOT SEEM TO BE FULLY BRIEFED ON THE SUBJECT, STONEWALLED BY SAYING THAT THE

LEASE STILL HAD 18 YEARS TO RUN AND THAT THE MATTER WAS

NOT URGENT. WHEN THE GOVERNOR POINTED OUT THAT THE MATTER

WAS NOT ONE OF THE NEW TERRITORIES LEASE AS SUCH BUT OF

INDIVIDUAL LAND LEASES, HUANG SAID IT WAS SOMETHING THAT

WOULD HAVE TO BE CONSIDERED AND THAT DENG HAD ALREADY

GIVEN DETAILS OF CHINA'S 'PRINCIPLED STAND ON THE HONG

KONG QUESTION. THE GOVERNOR REMARKED THAT DENG'S COMMENTS,

HAD BEEN FAVOURABLE.

50 THE GOVERNOR LATER SAW LIAO CHENGZHIH (WHO HAS PARTICULAR RESPONSIBILITIES FOR HONG KONG). THE

CONVERSATION WAS GENERAL AND VERY FRIENDLY. THE GOVERNOR

REFERRED TO THE CONVERSATION WITH DENG, SAYING THAT, WHILE HE UNDERSTOOD THE LATTER'S POSITION ON THE LONG TERM FUTURE, HE WAS GLAD THAT DENG ALSO UNDERSTOOD HIS OWN PROBLEMS

IN THE MORE IMMEDIATE FUTURE, LIAO SAID THAT HE COULD NOT

GO FURTHER THAN DENG, AND THAT THE MATTER REQUIRED STUDY,

BUT INDICATED OPTIMISM ABOUT THE SOLUTION OF BOTH THAT

AND SHORT TERM PROBLEMS.

CRADOCK

[SENT BY BAG TO HONG KONG]

FILES

HD.HK & GD

HD. FED

PS

'PS/LORD GORONWY "ROBERTS

PS/PUS

STP A DUFY

MR.CORTAZZI

MR.MURRAY

COPIES TO:

SIR IAN SINCLAIR

LEGAL ADVISER

3

SECRET