TNAG-1025-FCO40-1275-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1981 — Page 98

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ANNEX B

EXTRACT OF TALKS BETWEEN THE GOVERNOR AND DENG XIAOPING, 29 MARCH 1979

He

'Deng Xiaoping said that relations between Guangdong and Hong Kong

were good, although some questions were difficult to solve.

understood that the people of Hong Kong were concerned about the

future status of Hong Kong. China had a consistent policy:

sovereignty over Hong Kong belonged to China. But Hong Kong had

her own special status. People were concerned about the way out

for the New Territories in 1997. This was still 18 years away.

This was not a long time. There might be specific discussions by

that time taking account of the circumstances of the day. Any

solution of the status (of the New Territories) would have as its

But it could be prerequisite that Hong Kong was part of China.

said with certainty that, when the two sides discussed the question,

China would respect the special status of Hong Kong. People were

concerned about investment. The Chinese Government gave a clear

assurance that, when there was a political solution, it would never

affect investments.

Reverting to the New Territories Lease, he sai

that he formally requested the Governor to ask investors to put

their hearts at ease. It was China's long-term policy to regard

Hong Kong as a special case, no matter what political solution was reached by 1997. The Governor said that the problem could not be

overcome by generalised assurances. What he had in mind was replacing

the leases valid to 1997 with leases valid as long as Britain

administered the New Territories. This would get rid of the date.

Deng Xiaoping commented that it would be best to avoid wording which

It would be better to mentioned continuing British administration.

/say

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