TNAG-1034-FCO40-1284-Visits-by-non-officials-from-Hong-Kong-to-the-UK-1981 — Page 20

CONFIDENTIAL

Mick 026119

1 DEC 1981

DESK PE

INDEX

CGE

SUMMARY RECORD OF MEETING BETWEEN MR DONALD AND LORD SHEPHERD AND MR FUNG KING-HEY: 25 NOVEMBER 1981

1/12

سلام

Present:

Mr A E Donald

Mr R D Clift

The Rt Hon Lord Shepherd

(Adviser to Sun Hung-Kai Securities)

Mr Fung King-Hey (Chairman of Sun Hung-Kai Securities)

-

Mr Jack So (Director, Sun Hung-Kai Securities)

See 145

Next Governor of Hong Kong

1.

146

47

Lord Shepherd and Mr Fung stressed the anxiety of people in Hong Kong at the delay in announcing the name of the new Governor. Mr Donald stressed the importance of selecting a good candidate to succeed Sir Murray MacLehose. This took time. He hoped that an announcement would not be too long delayed. He stressed that there was no question of HMG being indifferent on this question. On the contrary, they were fully aware of its importance.

Future of Hong Kong

2.

ник

See Min 040/1

(297

1982

Lord Shepherd said that Mr Fung had frequent contacts with Chinese leaders. He had raised the question of the future

He had and the New Territories Lease on numerous occasions. the feeling that it might be becoming counter-productive to go on doing this since the Chinese Government appeared not to be ready to discuss it. What was Mr Donald's view?

3. Mr Donald said that generally speaking the Chinese Government prided themselves on having consistent and 'principled' views on policy matters. They obviously believed that the general assurances that they had provided on a number of occasions about Hong Kong investors putting their hearts at ease were statements of principle and there was a risk that individuals might irritate the Chinese Government by appearing to question their sincerity. There was, however, no doubt that the Chinese understood the basic importance of maintaining Hong Kong's stability. It was less sure, however, that the Chinese understood the practical and legal problems facing HMG.

One was There were in fact two axes of contact with China. between the British and Chinese Governments, the other between Hong Kong and Guangdong Province. It required judgement to decide which question should be dealt with on which channel but there was no doubt that the major issue of the future of Hong Kong was a matter to be handled on a government-to-government basis. There was a danger of individuals crossing wires if there was too much discussion by them on these delicate issues. Second or third hand information quite often got garbled, however well-intentioned people were. Of course, it was valuable for influential people like Mr Fung to exchange ideas

/with

CONFIDENTIAL