TNAG-0944-FCO40-1163-Future-of-Hong-Kong-1980 — Page 132

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j) This, in turn, means that we may end up by living with

the present situation for several more years. In these circumstances, we would need to consider at least getting the Chinese to be more specific in their assurances and to undertake practical confidence- building measures. On the first point, we are unlikely to get the Chinese to say much more in public than they have already done, although they might confirm, in answer to a question, that their assurances applied to the holding of land leased by the 'present authorities in Hong Kong' or some such phrase. They might, however, be prepared to say more in private to firms considering investment, eg specifically making clear that the company in question could confidently amortise its costs over the 15-year mortgage period. On the practical side, continued Communist investment in the New Territories would be of some, though limited, help in confidence- building. Most useful might be some Communist financial participation in major semi-governmental projects in the New Territories such as the new airport.

referred to this on 8 May, though he got it somewhat con- fused with the associated, but more difficult, idea of an airport on the Guangdong side of the border.

би

7 August 1980

cc Mr McLaren FED

R D Clift

Hong Kong and General Department

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