TNAG-0851-FCO40-1061-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 104

GRS 300

SECRET

SECRET

FCO 01194OZ NOV 79

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER 900 OF 1 NOVEMBER

INFO PRIORITY PEKING.

ass

MIPT: PREMIER HUA'S VISIT

356

Никоно

RELOVED IN SETU NO. 31

5 NOV 1979

INDEX

REGISTRY

Action Taken

See (261

893

FOLLOWING IS EXTRACT ON NEW TERRITORIES LEASES:

THE SECRETARY OF STATE SAID THAT PREMIER HUA WOULD REMEMBER THAT WHEN THE GOVERNOR OF HONG KONG HAD VISITED CHINA, HE HAD RAISED THE QUESTION OF THE NEW TERRITORIES LEASES. THE PROBLEM WAS THAT AS 1997 APPROACHED, UNCERTAINTY ABOUT NEW LEASES GREW. THE GOVERNOR HAD LATER MADE SOME PROPOSALS, WHICH THE CHINESE GOVERNMENT FOUND

IACCEPTABLE. THE BRITISH GOVERNMENT WOULD NOT PURSUE THESE, SINCE ANY PROPOSALS HAD TO BE ACCEPTABLE TO BOTH SIDES. BUT HE WOULD BE GRATEFUL IF PREMIER HUA COULD GIVE THOUGHT, OR CAUSE, THOUGHT TO BE GIVEN, TO THE PROBLEM OF MAINTAINING CONFIDENCE IN HONG KONG'S FUTURE. IT WAS NOT IN THE INTERESTS OF CHINA, OR OF HONG KONG, THAT UNCERTAINTIES ABOUT THIS SHOULD PUT THE FUTURE OF HONG KONG INTO JEOPARDY AND AFFECT INVESTMENT CONFIDENCE THERE. THE PRIME MINISTER ADDED THAT THE BRITISH GOVERNMENT DID NOT EXPECT AN ANSWER ON THE SPOT, BUT WERE ASKING THE CHINESE GOVERNMENT TO GIVE THOUGHT TO THE QUESTION.

FREMIER HUA REPLIED THAT THE CHINESE GOVERNMENT HAD GIVEN SERIOUS THOUGHT TO THIS QUESTION, AND HAD GIVEN THEIR REPLY. THEY HAD TO BE VERY CAREFUL ABOUT WHAT MIGHT BE SAID ABOUT CHINESE TERRITORY. ON THE OTHER HAND, THE CHINESE GOVERNMENT HAD VERY GOOD RELATIONS WITH THE BRITISH GOVERNMENT, AND WITH THE BRITISH AUTHORITIES IN

HONG KONG. AT HIS PRESS CONFERENCE BEFORE HIS DEPARTURE, HE HAD ANSWERED QUESTIONS ON HONG KONG, AND SO FAR AS HE WAS AWARE, THE REACTION HAD BEEN FAVOURABLE. THE CHINESE GOVERNMENT WOULD KEEP IN

TOUCH WITH THE BRITISH GOVERNMENT AND WOULD TAKE ACCOUNT OF THE ANXIETIES OF INVESTORS EVEN AFTER THE PROBLEM HAD BEEN RESOLVED. (THE PRECISE SIGNIFICANCE OF THIS LATTER PHRASE WAS NOT CLEAR).

CARRINGTON

FILES

HK & GD FED

MR CORTAZZI MR MURRAY

SECRET