GRS 280
SECRET
FM HONG KONG 290951Z SEP
SECRET
HK Kokoll
TO IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 1261 OF 29 SEPTEMBER, 1980 1 OCT 1980
INFO IMMEDIATE PEKING.
K
MIPT: COMMENT ON THE LEASES BRIEF vs
1. OBJECT SHOULD BE:-
REGISTRY
Action Te
.10
2
A) TO MAKE THE CHINESE FOCUS ON THE PROBLEM OF LEASES AND ITS COMPARATIVE URGENCY, WITHOUT PROVOKING A PREMATURE NEGOIATION: AND B) TO DISCOVER, WHETHER THEY PREFER TO DISCUSS SHORT-TERM ISSUES, SUCH AS LEASES, SEPARATELY FROM LONG-TERM FUTURE OF HONG KONG.
2. TOO SOON TO START OFFICIAL DISCUSSIONS IN PEKING EVEN IF THE
CHINESE HINT AT THIS BEING POSSIBLE. THIS BECAUSE:-
A) THE GOVERNMENT IS NEW
B) THE SOLUTION IS NOT YET URGENT ENOUGH TO MAKE CHINESE ACCEPT PROBLEM CANNOT BE POSTPONED (PROPERTY PRICES ARE AT AN ALL-TIME HIGH)
C) OVER THE NEXT SIX OR EIGHT MONTHS POSSIBLE SOLUTIONS MAY BEGIN TO EMERGE FROM THE DISCUSSIONS THAT INDIVIDUAL HONG KONG DEVELOPERS
ARE HAVING WITH CHINESE AUTHORITIES. IF A TENABLE SOLUTION DID
EMERGE WE COULD THEN PUT IT TO THE MFA IN THE KNOWLEDGE THAT IT
WAS LIKELY TO BE ACCEPTED.
3. THE CHINESE MAY SAY THAT LONG-TERM AND SHORT-TERM PROBLEMS
CANNOT BE SEPARATED. A PASSAGE TO COVER THIS HAS BEEN ADDED TO
THE DISCUSSION SCENARIO.
4. IF NOTHING DOES EMERGE FROM 2(C) WE WOULD HAVE TO RESORT TO FORMAL CHANNELS ABOUT THE END OF $81. BUT IF WE WERE TO DO THIS
EXCEPT AGAINST A BACKGROUND OF URGENCY, WE WOULD GET BOGGED DOWN.
5. TO ILLUSTRATE CONCEPT OF HOW THIS SHOULD BE HANDLED, SCENARIO OF PROPOSED DISCUSSION ATTACHED.
6. ADVISE AGAINST (AGAINST) TRYING TO EXPAND DENG'S 'ASSURANCES TO INVESTORS TO COVER REAL ESTATE. THE CHINESE MIGHT QUIBBLE. IN
ANY CASE IT IS NOT THE REAL ISSUE, AND QUESTIONS ABOUT ITS MEANING WILL DETRACT FROM VALUE. SUGGEST PRESS STATEMENT REFERENCE TO HONG KONG SHOULD BE AS IN FIRST PART ONLY OF PARAGRAPH 2 OF **POINTS TO MAKE OF BRIEF 8(B).
MACLEHOSE
LIMITED
:
FED
SIR.E. YOUDE
HKEYD
MRDONALD
PS FIR BLAKER
Ps | pus
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