TNAG-0849-FCO40-1059-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 97

SECRET

DESKBY 141030Z

SECRET

FM PE İNG 1478272 MAY 79

TO IMMEDIATE FCO

TELEGRAM NUMBER 444 OF 14 MAY 79

AND TO IMMEDIATE HONG KONG

MIPT:

FUTURE OF HONG KONG

90

3.

1.

SIVED IN

15 MAY 1979

DCSK OFFEN HADES

NO. 51

Acson 7ke.

по

183.71

1. TO REMAIN CONSISTENT WITH THE ARGUMENT IN MIPT, ANY APPROACH THAT WE NOW MAKE TO THE CHINESE SHOULD IDEALLY

INCLUDE HINTS ABOUT THE CONTENTS OF CLAUSE 3, AND THE NEED FOR BOTH HONG KONG AND UK LEGISLATION, AND CAREFUL ASSESSMENT OF ANY REACTION. THIS MAY, HOWEVER, REQUIRE MINISTERIAL APPROVAL, NOT ONLY OF THE IMMEDIATE EXERCISE, BUT OF THE

· ENTIRE PLAN: PERHAPS, THEREFORE, PARA 3 OF HONG KONG TELNO

566 13 AS FAR AS WE CAN GO AT PRESENT.

2.

YOU MAY, HOWEVER, BE CONSIDERING A BROAD AND DETAILED SUBMISSION IN WHICH APPROVAL FOR THE APPROACHES

MIFT

SET OUT IN HONG KONG TELNO 519 WILL BE SOUGHT, THEREFORE CONTAINS/A REVISED VERSION OF HONG KONG'S PARA 3, INCLUDING THE POINTS MENTIONED ABOVE. 1 HAVE WEAKENED HONG KONG'S FINAL SENTENCE. WHILST I AGREE WE SHALL NEED TO REVEAL THE WHOLE OF THE SUBSTANCE OF OUR ACTION TO THE CHINESE, I CONTINUE TO DOUBT THE WISDOM OR NECESSITY OF COMMITTING OURSELVES TO THE UNUSUAL STEP OF SHOWING THE DETAILED TEXT OF PROPSED LEGISLATION TO A FOREIGN

GOVERNMENT,

I

3. WE WOULD PROPOSE TO LEAD INTO THE DISCUSSION BY MENTIONING SONG'S REMARKS AND ALLUDING TO DENG'S CONCERN ABOUT MAINTAING THE CONFIDENCE OF INVESTORS.

SECRET

14. I AGREE