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OF EITHER SIDE ON STATUS OF HONG KONG.
THIS SHOULD HOLD
CONFIDENCE UNTIL 1989 OR 1990. DO CHINESE WISH TO SUGGEST
OTHER POINTS TO BE COVERED?
7. 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 OF OUR DISCUSSIONS
CONFIDENTIAL. BUT WILL NEED TO SAY SOMETHING TO THE PRESS AFTER
CURRENT VISIT. 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 ASSURED THAT INDIVIDUAL LEASEHOLDS WOULD
BE RESPECTED.'
CHINESE REPRESENTATIVE IN HONG KONG
8.
(IF CHINESE RAISE): PRESENT ARRANGEMENTS WORK WELL. RISK
OF UPSETTING CONFIDENCE IN HONG KONG. COULD BE CONSIDERED IN
GENERAL CONTEXT OF CONCRETE MEASURES TO SUSTAIN CONFIDENCE OF POPULATION AND INVESTORS.
BRITISH RECOGNITION OF CHINESE SOVEREIGNTY
9. (IF CHINESE RAISE): RAISES VERY DIFFICULT ISSUES. I WOULD
NEED TO DISCUSS WITH MY COLLEAGUES. BEFORE DOING SO WOULD NEED
TO KNOW WHETHER CAN SAY IT WOULD FORM PART OF PACKAGE THAT WOULD
LET PEOPLE AND INVESTORS IN HONG KONG KNOW WHERE THEY STOOD FOR
A FAIRLY LONG TIME TO COME.
B) SUPPLEMENTARY BRIEF :
QUOTE:
UNQUOTE.
1. TWO ASPECTS TO HONG KONG PROBLEM
LONG-TERM AND SHORT-TERM.
WE ARE BOTH AGREED ON NEED TO MAINTAIN HONG KONG 1S PROSPERITY.
THIS REQUIRES SOME ACTION IN SHORT-TERM. INDIVIDUAL NEW
TERRITORIES LAND LEASES IMPORTANT FACTOR. DIMINISHING PERIOD OF
LEASES WILL BE SERIOUS DETERRENT TO INVESTORS IN A YEAR OR TWO.
MUST FIND MEANS OF GIVING RIGHTS TO PROPERTY THAT DO NOT AUTO-
MATICALLY END IN 1997. ACCEPT THAT WE MUST DO THIS IN A WAY
THAT WILL NOT PREJUDICE CHINA 1S POSITION IN LONG-TERM.
AT MAINTAINING STABILITY IN COMMON INTEREST.
2.
AIMING
NO FIXED IDEAS ON FORM LEASE SHOULD TAKE. ONE POSSIBILITY
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