TNAG-0943-FCO40-1162-Future-of-Hong-Kong-1980 — Page 185

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CRADOCK, I AM INCLINED TO THINK THAT THE SECRETARY OF STATE COULD

INITIALLY CONCENTRATE ON GETTING THE CHINESE TO EXPAND DENG'S

ASSURANCES IN A FORM THAT COULD BE PUBLICLY QUOTED. WHETHER HE

WOULD GO BEYOND THAT WOULD DEPEND ON THE CHINESE ATTITUDE.

ON A POSSIBLE POLITICAL QUID PRO QUO, I AGREE THAT THE

FORMULA DESCRIBED IN PARAGRAPH 6 OF CRADOCK'S LETTER (IE COVERING

LEASES THROUGHOUT THE TERRITORY) COULD BE A REAL GAIN. WE ARE

EXAMINING THE LEGAL IMPLICATIONS OF THIS, AND OF THE LESSER

SOLUTION OF AN ASSURANCE ONLY ON NEW TERRITORIES LEASES BALANCED

BY A STATEMENT ON SOVEREIGNTY, ALONG WITH THE IMPLICATIONS OF

OTHER POSSIBLE CHINESE DEMANDS. MEANWHILE WE WOULD BE GRATEFUL

FOR YOUR VIEWS ON HOW A STATEMENT REASSERTING CHINESE SOVEREIGNTY

WOULD NOW BE SEEN IN HONG KONG, GIVEN THAT EVERYTHING WOULD HAVE

TO BE MADE PUBLIC IN SOME WAY. WE HAVE YOUR AND CRADOCK'S JOINT

MEMORANDUM ANNEXED TO YOUR LETTER TO MCLAREN OF 21 DECEMBER 1978,

IN WHICH YOU FORESAW A POSSIBLE LOSS OF CONFIDENCE IN HONG KONG

UNLESS THERE WAS A VERY FIRM CHINESE ASSURANCE ON THE LONG-TERM

FUTURE. WOULD CRADOCK'S FORMULA BE SUFFICIENT TO ASSUAGE FEARS IN HONG KONG?

CARRINGTON

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