TNAG-0937-FCO40-1156-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1980 — Page 104

in Hong Kong's future.

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Premier Hua said that the Chinese had

given some thought to the question and had given their reply.

They had to be very careful what was said about Chinese territory.

But they did have very good relations with HMG and the British

authorities in Hong Kong. It had been agreed that 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.

Governor's talk with First Director of New China News Agency (NCNA), Hong Kong

9.

The next discussion of the issue was during a dinner on

1 November 1979 the Governor gave Mr Wang Kuang, the First Director

of the New China News Agency. Mr Wang suggested that the solution

to the problem lay in economic cooperation rather than in a political

or legal framework. The Governor doubted whether a solution simply

based on Vice Premier Deng's assurances would be sufficient.

Financial Secretary's visit to Peking

10. The matter was raised again with the Chinese during the

visit of Sir Philip Haddon-Cave, the Hong Kong Financial Secretary,

to Peking in May this year. During a meeting with Vice Premier

Gu Mu, Sir Philip pointed out that there were some very large

and expensive projects which could only be financed by an approach

to the international capital markets. The question was whether

in the mid-1980s these markets would be prepared to make long-term

loans. Mr Gu said that he understood that the problem of confidence

concerned the future of the New Territories and what should be done

as a next step. As he understood Vice Premier Deng's explanation

/to

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