TNAG-1019-FCO40-1269-Relations-between-Hong-Kong-and-China-1981 — Page 52

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2. Me Head CONFIDENTIAL 02062

2. Mr. Bai

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Record of Meeting

Secretary of State Haig's Call at

on 12th June 1981

020/6 HKK 020/6

026

RECEIVED IN RECKAY NO. 51 0 6 JUL 1981

0:

REGISTRY

ernment House Taken

His Excellency

Sir Murray MacLehose

Sir Jack Cater

Mr J Bremridge

Mr I C Orr

Mr J A Miller

Secretary of State

the Honourable Alexander Hai

Mr Thomas Shoesmith,

US Consul-General

Mr J Holdridge,

Assistant Secretary,

Asian Affairs

cary,

Mr Goldberg, Special Assistant

Mr Fisher

#

Hong Kong/China Relations

า

Mr Haig said that whenever the Chinese talked

to him about Taiwan they referred to Hong Kong. In a recent meeting the Chinese Ambassador had told him that re-united Taiwan would be allowed to enjoy the sort of autonomy which Hong Kong now had. He asked whether the Chinese were prepared to discuss the question of the lease.

2.

HE said that it was clear from both his own and Lord Carrington's meetings with Deng that the Chinese were definite that in the long-term Hong kong would revert to the motherland. They were equally clear that in the short- term Hong Kong had an essential role to play in modernisation it provided 37% of China's foreign exchange in 1980. It was on the intermediate stage that they were vague.

Deng had evidently thought that his assurances would be sufficient to carry confidence in Hong Kong. He was surprised that

businessmen in Hong Kong continued to press for a more concrete assurance, particularly as Hong Kong's economy showed no signs of despondency. Ironically while the Chinese were happy to allow Hong Kong to continue the British legal position demanded some action as the Govem or's powers in the New Territories were tied to the lease. An Order in-Council could extend these powers but this would inevitably attract publicity and embarass the Chinese. Only

CONFIDENTIALne

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