TNAG-0944-FCO40-1163-Future-of-Hong-Kong-1980 — Page 67

DRAFT

SECRET

DSR 11C

SECRETARY OF STATE'S VISIT TO CHINA:

FUTURE OF HONG KONG

SUPPLEMENTARY BRIEF ON LEASES IN THE NEW TERRITORIES

Points to Make

1.

As in paragraph 3 of the 'Points to Make' of the

main brief.

BAULLE KALI in Lake walýza,

2.

as to

Will tackle this problem in low-key fashion so as

avoid speculation, but already much public discussion in

Hong Kong andBritish press.

Essential, however, to keep

content of our discussions confidential. But will need to

say something to thepress after Secretary of State's visit.

We suggest the follows:

'We talked of Hong Kong, and in particular how

important it is that there should be continuing

and expanding cooperation in the economic field to

the mutual advantage of China and of Hong Kong.

It is clear that Hong Kong has a role to play in

the context of China's policy of the 'four

modernisations'.'

[If the Secretary of State has been able to encourage

Vice Premier Deng to build on his 'hearts at ease' assurance

of last year, we might add:

3.

'We talked of the longer term too and importantly

I was told that the statement made last year to

the Governor of Hong Kong that 'investors should

put their hearts at ease' applied to leaseholders

in Hong Kong as well as intending investors'. 1

We have examined ways in which leases might be

granted in the New Territories which would not

necessarily come to an end in 1997. It would obviously

he helpful if the first lease were in favour of a

SECRET

/Chinese

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