TNAG-0850-FCO40-1060-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 123

SECRET

196

S SYS

ET

DENKBY HONG KONG 241237Z

Накачови

RECEIVED IN 2*

2 5 SEP 1979

FH PEKING 241145Z SCP 79

TO IMMEDIATE FCO

TELEGRAM NUMBER 027 OF 24 SEPT 79

AND TO IMMEDIATE HONG KONG

TOP

IND

Act

195

MY TWO IPTS: NEW TERRITORIES LEASES

NO.

Jor no 1925.91

See 197 (199)

THIS IS A DISAPPOINTING REPLY AND A MORE THOROUGH REJECTION

TIAN I PERSONALLY HAD ENVISAGED. 1 FEARED THAT THE PASSAGE ON

CONTINUING ADMINISTRATIVE POWERS MIGHT WELL STICK IN THE

CHINESE GULLETS BUT THE WHOLE PROPOSAL IS HERE REBUFFED AS

**UNNECESSARY AND INAPPROPRIATE AND A FIRM WARNING ADDED OF

THE EFFECTS IF WE PERGIST,

# $

Sea Hiric

040/1

THE CHINESE APPEAR TO BE UNWILLING TO UNDERSTAND THE NEED FOR BRITISH LEGISLATIVE MEASURES (AS OPPOSED TO GENERAL CHINESE STATEMENTS) IN ORDER TO REASSURE INVECTORS. THEY APPEAR TO WISH TO KEEP THEIR OPTIONS OPEN AND TO AVOID A SITUATION IN WHICH THE BRITISH SEEM TO BE TAKING THE LEAD ON THE FUTURE OF THE COLONY AND CHINA ACQUIESCES. THEY SEEM PARTICULARLY NERVOUS

BOUT THE EFFECT OF THIS ABROAD. HERE THEY MAY BE THINKING OF THEIR HAGE IN NON-ALIGNED COUNTRIES, BUT THEY WILL ALSO

I

HAVE IN MIND THE EFFECT ON THEIR RELATIONS WITH TAIWAN.

WE SHALL NEED TO THINK CAREFULLY ABOUT OUR FORMAL RESPONSE. GIVEN THE FIRMNESS OF THE CHINESE LINE, IT WOULD, I THINK, BE UNWISE TO TRY AT ONCE TO ARGUE THROUGH THE WHOLE ISSUE AGAIN, BUT OUR IMMEDIATE AIM, I SUGGEST, SHOULD BE AT LEAST TO KEEP

A DIALOGUS GOING AND KEEP THIS REBUFF SECRET. WE SHALL ALSO

VEED TO CONSIDER WHAT REFERENCES WE MAKE TO THE SUBJECT IN THE TALKS WITH EITHER NUA GUOFENG OR HUANG HUA IN LONDON. } DOUBT

IF WE CAN AVOID IT. WE MIGHT CONSIDER A RESPONSE WHICH INCLUDED

THE FOLLOWING POINTS:

A.

WE APPRECIATE THE PRANKNESS WITH WHICH THE CHINESE HAVE

GIVEN US THEIR VIEWS ON HONG KONG.

3. THE PROSPERITY OF HONG KONG IS OF DIRECT CONCERN TO BOTH

SIDES.

-70

1981

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/C, DESPITE