TNAG-1038-FCO40-1288-Future-of-Hong-Kong-1981 — Page 195

PERSONAL AND CONFIDENTIAL

Original at: HKK ozolz

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RECEIVED IN REGISTRY NO. 51 13 APR 1981

Mr. Clif

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CALL BY SIR Y K PAO ON THE FOREIGN AND COMMONWEALTH SECRETARY

INDEX

AT GOVERNMENT HOUSE: 30 MARCH 1981

اهد

PA

27.4.

Action Taken

110 5/5

Sir Y K Pao paid a courtesy call for half an hour on

Lord Carrington.

(a)

mar

The following subjects came up:-

Japan: Lord Carrington asked for Sir Y K's views on the internal politics of Japan. Sir Y K replied

in fairly orthodox terms. He saw Mr Suzuki very much as a figurehead, with the major centres of power located in the Tanaka and Fakuda factions.

(b)

China: Brief discussion on internal developments in China.

(c) Sino/American Relations: Sir Y K Pao had seen ex- President Ford after his visit to Peking, and thought that the trip had only been moderately successful. He had been in Washington for the Presidential inauguration and had formed the impression that the President was strongly attached to Taiwan, Vice-President Bush equivocal, and Mr Alexander Haig firm in his intention to develop a sensible relationship with the PRC.

Sir Y K

at this time!

Actuald 9/9

(d) Future of Hong Kong: /thought it essential to get away from the artificial deadline established by the expiry of the lease in 1997. The Chinese Government had not formally acknowledged the lease. It followed that it would be very difficult or impossible for them to renew it. Sir Y K did not, in fact, think that confidence in Hong Kong depended

on a formal arrangement to extend British tenure. The fact was that, with or without the lease, the Chinese could move against

Hong Kong at any time. Confidence was therefore based on other factors, such as the sound working relationship now established with the PRC. By the same token, it should be possible to extend it into the future.

(e) Law and Order: Sir Y K Pao claimed that law and order had deteriorated markedly in Hong Kong. He thought that the Royal Hong Kong Police were under-staffed.

30 March 1981

ccs:-

RMY L

Hong Kong and General Dept, FCO (to enter)

Sir E Youde

Mr Donald

V

PS/Governor

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