TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 132

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акконо

HEKOM

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INDEX

12 JUN 1980

OFFICIA

PA

COPY

[Action Tan

The Kwa/8 AW 198

(41)

SECRET

FM PEKING 1107232 JUN 80

TO PRIORITY HONG KONG

TELEGRAM NUMBER 69 OF 11 JUNE BO

INFO PRIORITY FCO

PERSONAL FOR GOVERNOR

33A

YOUR TELNO 150:

1.

LEASES AND THE FUTURE OF HONG KONG

I AM NOT SURE HOW FAR OUR VIENS DIFFER. MY OWN ARE

CERTAINLY NOT ROSY: RATHER VE FACE A VERY DIFFICULT PROBLEM

IN WHICH OUR ROOM FOR MANOEUVRE IS LIMITED.

THE ANALYSIS IN PARAGRAPHS 2-4 OF YOUR TELEGRAM IS FINE. THE PROBLEM IS HOWEVER THAT GU MU HAS CLEARLY LINKED THE NEXT STEPS (WHICH MUST INCLUDE LEASES) WITH THE LONG TERM FUTURE

OF HONG KONG, AND, WHILE HE WAS POSITIVE ABOUT THE NEED TO MAINTAIN HONG KONG'S POSPERITY HE ALSO SAID THAT IT WAS FOR CHINA TO FIND SOLUTIONS, WE SHOULD NOT UNDERESTIMATE THIER COMPULSION TO FIND A SOLUTION THAT WOULD ENABLE THEM, AS GU MU TWICE SAID,

TO FACE CHINESE AND WORLD OPINION.

3.

WE SHALL HAVE TO WORK WITHIN THIS FRAMEWORK WHILE INFLUENCING THEM AS MUCH AS WE CAN. WHILE THEREFORE I AM SURE THAT WE SHOULD BE ON THE WATCH FOR ANY SIGNS THE CHINESE MAY GIVE US (EG OVER LONG LEASES), I AM RATHER MORE LOTH THAN YOU TO PASS UP THE INVITATION TO A DIALOGUE IMPLICIT IN GU MU'S REMARKS ABOUT THE NEED FOR BOTH SIDES TO REFLECT NOW ON THE FUTURE. NEGOTIATION WOULD CERTAINLY BE PREMATURE. IS A MATTER OF SEEKING TO INFLUENCE CHINESE THINKING AT THE

EARLY FORMATIVE STAGE.

IT

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