!
LONGE ERM
4.
Recognise distinction between long-term future and
immediate concrete problems. Not too soon to begin
thinking seriously about long-term future. But emphasise
not our intention to try and tackle long-term through
leases issue. Need for means of dealing with leases that will not prejudice positions of either side on future.
CHINESE RESPONSES
Should
Helpful
5. (If Chinese do no more than repeat assurances):
keep in touch on problem. But cannot delay too long.
(In response to acceptance of need to act now):
if officials could discuss ways on which leases might be
issued on terms acceptable to investors, which could take
into account Chinese position. What form of lease would
Chinese suggest? (See Annex C)
PRESS
6. Will tackle this problem in low-key fashion so as to
avoid speculation, but already much public discussion in
Hong Kong and British press.
Essential to keep content
But will need to say
of our discussions confidential.
something to the press after Secretary of State's visit.
We suggest:
'We talked of Hong Kong, and in particular of the
importance of continuing and expanding cooperation in the
economic field to the mutual advantage of China and
Hong Kong. We spoke also of land leases in the New
Territories, and I was told that the statement made in
1979 to the Governor of Hong Kong that 'investors
should 'put their hearts at ease' applied to leaseholders
as well as intending investors.
CHINESE REPRESENTATIVE IN HONG KONG
7. (If Chinese raise): Present arrangements work well.
SECRET
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