TNAG-1025-FCO40-1275-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1981 — Page 5

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SECRET

SECRET

TO IMMEDIATE FCO

FM PEKING Ø21014Z MAR 81

TELEGRAM NUMBER 244 OF 2/4

INFO IMMEDIATE HONG KONG

FROM PRIVATE SECRETARY:

Mr Williams on

27.4.

나

HKCIC 02012 RECEPT IN RESISTRY NO. 51

O APR 1981

DESK OFFICER

SECOND MEETING BETWEEN SECRETARY OF STATE AND CHILNENDEX

FOREIGN MINISTER

میں

PA

REGISTRY

Action Taken

who I $10.4.

AW 10/

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FUTURE OF HONG KONG

1.

LORD CARRINGTON RAISED HONG KONG WITH HUANG HUA ON 2

APRIL. HE SAID THAT HE HAD READ THE REUTER CORRESPONDENT'S

ACCOUNT OF SONG XHIGUANG'S REMARKS ON THE SUBJECT AND HAD

BEEN GRATEFUL FOR THEM. BUT HE THOUGHT HE SHOULD PASS ON TO HUANG HUA, AND ALSO TO DENG XIAOPING WHEN HE SAW HIM,

CERTAIN IMPRESSIONS FROM HIS VISIT TO HONG KONG. IT WAS CLEAR

THAT EVERYONE THERE APPRECIATED THE STATEMENT MADE TO THE GOVERNOR

BY DENG. BUT THERE WAS A PROBLEM WHICH RELATED NOT TO CHINA'S INTENTIONS OR HER POLITICAL POSITION (WHICH WAS UNDERSTOOD)

BUT TO THE FACT THAT BRITAIN WAS A LEGALISTIC COUNTRY. THE DATE 1997 WAS ENSHRINED IN BRITISH LAW, AND BECAUSE THE PEOPLE OF HONG KONG AND INVESTORS WERE FULLY AWARE OF THIS, CONFIDENCE WAS AFFECTED. THE STABILITY AND PROSPERITY OF HONG KONG WERE OF THE HIGHEST IMPORTANCE TO BRITAIN AND CHINA, AS WELL AS TO HONG KONG ITSELF. BUT IN HIS DISCUSSIONS WITH BUSINESSMEN AND INVESTORS IN HONG KONG LORD CARRINGNLN HAD DETECTED THE BEGINNINGS OF CONCERN OVER THE LEGAL PROBLEM, FOR EXAMPLE AS REGARDS LAND LEASES AND THE LENGTH OF MORTGAGES. THERE WAS AN UNEASE WHICH WOULD INEVITABLY GROW UNLESS SOMETHING WAS DONE. LORD CARRINGTON DID NOT EXPECT THE QUESTION TO BE DISCUSSED NOW, BUT HE HOPED THAT THE CHINESE WOULD CONSIDER CAREFULLY THE PROBLEM WHICH HE HAD DESCRIBED.

2. HUANG HUA SAID THAT THE CHINESE SIDE HAD NOTHING TO ADD TO THE STATEMENT MORE BY DENG TO SIR M MACLEHOSE IN 1979. THAT HAD BEEN AN AUTHORITATIVE STATEMENT MADE ON BEHALF OF THE CHINESE GOVERNMENT. IT SHOULD GIVE INVESTORS AND BUSINESSMEN IN HONG KONG CONFIDENCE THAT CHINA WOULD CONSIDER AND PROTECT THEIR INTERESTS. HOWEVER, AS LORD CARRINGTON WOULD BE MEETING DENG, HE COULD PURSUE THE MATTER WITH HIM. HE ASKED WHAT LORD CARRINGTON'S IDEAS WERE ON

THIS QUESTION.

SECRET

13.