TNAG-1039-FCO40-1289-Future-of-Hong-Kong-1981 — Page 207

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could have a local government which would differ from others within China in having "more self-government".

3.

A commentary broadcast in Peking Radio's service for Taiwan on 9 February 1981 gave the following more detailed account of the Chinese position :-

"Our Party Central Committee and State leaders have repeatedly and sincerely elucidated their stand on negotiations for a peaceful solution' of the question of unification. They have also repeatedly emphasised that upon Taiwan's return to the motherland, they would respect the system currently in effect in Taiwan, pay attention to the opinions of people in all walks of life in Taiwan, adopt reasonable policies and measures, make efforts not to cause the people of Taiwan any losses or change their present way of life, ensure that the living standard of the people of Taiwan would not be lowered and that the economic interests of foreign countries in Taiwan would not be affected and even let Taiwan keep its army and extensive organisations."

(While calling for peaceful negotiations the Chinese continue to make

clear that they do not renounce the use of force to regain Taiwan as a last resort).

4.

The Chinese have not in any recent authoritative statement which have come to my notice drawn any comparison between their intentions with regard to Taiwan and their view of the future of Hong Kong. However, it would be consistent with their generally reassuring line on Hong Kong if Chinese officials should draw such a comparison with the intention of indicating that in formulating plans for the future of Hong Kong China would pay due regard to local conditions and the interests of investors. Comments of this kind would, however, also suggest that such plans will be based on the resumption of Chinese authority for the government of Hong Kong.

3.

Kafälke

K C Walker

(:

Far Eastern Section Research Department (G 59/4: 233 3473)

22 April 1981

Mr

Friar

Thank you.

·

Please now produce the Taiwan Annex with a cross reference to Deng Xiaoping conversation with the Secretary of

State.

30 April 1981

2

R D Clift

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CODE 18-78