TNAG-0851-FCO40-1061-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 13

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香港下亞厘,畢

SECRET

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本署檔號 OUR REF: TSX 178

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Hong Kong & General Department FO

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NEW TERRITORIES LEASES

2830

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

13 December, 1979

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Mr. QuanFull

I have reported separately about the visit here of the Chairman of the Guangdong Revolutionary Committee, Xi Zhongxun.

2.

We thought that it would be right during Xi's visit to mention the problem of land leases in the New Territories so that he would register that this was an unsolved difficulty which could damage the way in which Hong Kong contributes to the economic development of Guangdong. The Acting Governor therefore mentioned the matter briefly during the meeting with Xi at Government House on 7 December. In doing so, he made it clear that he was not attempting to initiate further discussion of the matter, only ensuring that Xi was aware of the problem.

3.

Xi responded predictably by referring to what Deng Xiaoping had said and by linking the problem of confidence to the economic development of Shenzhen. In this he appeared to be following the same line of thought as that of Wang Kuang, First Director of the NCNA, when he spoke on this subject to the Governor at dinner on 1 November (my letter of 9 November). I am enclosing a record of the conversation.

4.

19/12

You may have noticed that the statement Xi issued to the press before leaving (Hong Kong telno 1749) also contained a phrase which may well have been inspired by this conversation and certainly reflected Xi's approach to the problem. The statement says that: "Good economic co-operation is bound to maintain sustained (chi-jiu-de) good relations between us and help to promote Hong Kong's stability and prosperity". The use of the word "sustained" immediately struck me.

Since it was not essential it seemed intended to imply that good economic relations (ie, Hong Kong

/contd...

CRET