TNAG-0851-FCO40-1061-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 53

Record of part of a conversation between HE the Governor and Mr Wang Kuang, First

Director NCNA at dinner at Government

House on 1 November 1979

New Territories Leases

1.

After referring to his extremely useful and enjoyable visit to China in March, the Governor said he thought it would be helpful to check with Mr Wang his recollection of the discussion with Vice-Premier Deng which Mr Wang had also attended. As he remembered it the Vice-Premier had made three major points:

(a)

(b)

(c)

Hong Kong was Chinese territory;

political changes could come before or after 1997. It was even possible that changes might not take place until the 21st century. Capitalism in Hong Kong and socialism in China might co-exist for a long time;

investors should be assured that, even if there were changes, their interests would be protected. (He had, as requested, passed on the Vice-Fremier's assurance that investors could put their hearts at ease'.,

Was Mr Wang's recollection of the conversation similar?

Mr Wang (taking time and choosing his words carefully) said that the points made by the Vice-Premier had been:

2.

(a)

Hong Kong was Chinese territory;

(b)

there was still 18 years to go before 1997 and this was a long time;

(c)

assurances had been given to people

investing both in China and in Hong Kong.

The Governor commented that he and the Political Adviser remembered the Vice-Premier as referring to 18 years as being 'not a long time'. However, he thought that Mr Wang's general description of the conversation was perhaps even clearer than his own.

3.

Mr Wang continued by pointing out that what Deng had said left open the options of either taking back

SECRET

/contd.

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