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15.
Lord Carrington said that during his visit to Hong Kong he found amongst businessmen and investors the beginnings of doubt. Not about Chinese intentions but about the legality of what would happen in the next few years because of the problem of leases, and the periods for which mortgages were
available. He added that he found an unease there he would
not put it any higher than that - but inevitably this would
grow over the years. The problem was not so much a political
problem but a problem over our legal position and the fact
that everyone in Hong Kong had been brought up in the British
legal tradition had an effect upon their own attitude to the
future. He asked if this problem could be considered.
16.
Huang Hua replied that China had nothing to add to the
position expressed by Vice-Chairman Deng Xiaoping to Sir
Murray MacLehose. Deng Xiaoping's statement was made on
behalf of the Chinese Government and was authoritative. It
should give confidence to investors and businessmen in Hong
Kong that China would consider and protect their interests. Huang Hua added that this question could be pursued during Lord Carrington's talks with Deng Xiaoping but asked if he
had any ideas. Lord Carrington said that it was a difficult
problem. It was necessary to find a solution to the immediate
problem which did not in any way embarrass China politically.
He quite understood the position. It might be possible for talks to take place later between officials. He added that,
having visited Hong Kong, the difficulty was that general
assurances were not enough. Something would have to be done
on our side. This would of course be without prejudice to China's long-term view of Hong Kong.
17. Huang Hua said that Sir Percy Cradock had put forward a proposal and the Chinese Government had made its position
clear. Sir Percy Cradock replied that the proposal which he
transmitted on behalf of HMG to Assistant Foreign Minister Song in July 1979 was simply one attempt at solving the problem. It did not suit the Chinese side and the proposal was dropped. Lord Carrington interjected that we would not do anything with
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