TNAG-1038-FCO40-1288-Future-of-Hong-Kong-1981 — Page 191

GR 630

Also at ACK 026/2 *CK.026/2

SECRET

FM PEKING 021014Z MAR 81

TO IMMEDIATE FCO

INFO IMMEDIATE HONG KONG

SECRET

TELEGRAM NUMBER 244 OF 2/4

TOP COPY

Акконо

RECEIVED IN XOSISTLY NO. 5 06 APR 981

FROM PRIVATE SECRETARY:

SECOND MEETING BETWEEN SECRETARY OF!

FOREIGN MINISTER

FUTURE OF HONG KONG

DECK OFFICER

REGISTRY

INDEX

PA

Action Tuke..

W

28.4 CHINESE

A

1. LORD CARRINGTON RAISED HONG KONG WITH HUANG HUA ON 2 APRIL. HE SAID THAT HE HAD READ THE REUTER CORRESPONDENT'S

ACCOUNT OF SONG XHIGUANG'S REMARKS ON THE SUBJECT AND HAD

BEEN GRATEFUL FOR THEM. BUT HE THOUGHT HE SHOULD PASS ON TO HUANG HUA, AND ALSO TO DENG XIAOPING WHEN HE SAW HIM, CERTAIN IMPRESSIONS FROM HIS VISIT TO HONG KONG. IT WAS CLEAR

THAT EVERYONE THERE APPRECIATED THE STATEMENT MADE TO THE GOVERNOR BY DENG. BUT THERE WAS A PROBLEM WHICH RELATED NOT TO CHINA'S INTENTIONS OR HER POLITICAL POSITION (WHICH WAS UNDERSTOOD)

BUT TO THE FACT THAT BRITAIN WAS A LEGALISTIC COUNTRY. THE DATE 1997 WAS ENSHRINED IN BRITISH LAW, AND BECAUSE THE PEOPLE OF HONG KONG AND INVESTORS WERE FULLY AWARE OF THIS, CONFIDENCE

WAS AFFECTED. THE STABILITY AND PROSPERITY OF HONG KONG WERE

OF THE HIGHEST IMPORTANCE TO BRITAIN AND CHINA, AS WELL AS TO HONG KONG ITSELF. BUT IN HIS DISCUSSIONS WITH BUSINESSMEN AND

INVESTORS IN HONG KONG LORD CARRINGNLN HAD DETECTED THE BEGINNINGS OF CONCERN OVER THE LEGAL PROBLEM, FOR EXAMPLE

AS REGARDS LAND LEASES AND THE LENGTH OF MORTGAGES. THERE WAS

AN UNEASE WHICH WOULD INEVITABLY GROW UNLESS SOMETHING WAS

DONE. LORD CARRINGTON DID NOT EXPECT THE QUESTION TO BE

DISCUSSED NOW, BUT HE HOPED THAT THE CHINESE WOULD

CONSIDER CAREFULLY THE PROBLEM WHICH HE HAD DESCRIBED.

2. HUANG HUA SAID THAT THE CHINESE SIDE HAD NOTHING TO ADD

TO THE STATEMENT MORE BY DENG TO SIR M MACLEHOSE IN 1979,

THAT HAD BEEN AN AUTHORITATIVE STATEMENT MADE ON BEHALF OF THE CHINESE GOVERNMENT, IT SHOULD GIVE INVESTORS AND BUSINESSMEN IN HONG KONG CONFIDENCE THAT CHINA WOULD CONSIDER AND PROTECT THEIR INTERESTS. HOWEVER, AS LORD CARRINGTON WOULD BE MEETING DENG, HE COULD PURSUE THE MATTER WITH HIM. HE ASKED WHAT LORD CARRINGTON'S IDEAS WERE ON THIS QUESTION,

SECRET

13.

87