TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 199

Mr Donald

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нни око 1

RECEIVED IN REGISTRY NO.

0 10CT1981

DESK OFFICER INDEX

PA

Pts 19/2

Enter

202A

Α

B

C

199A

CHINA/TAIWAN

1.

You asked Research Department to minute about the latest Chinese proposals on Taiwan (Peking telnos 593 and 594) attached. The following paragraphs incorporate FED and Research Department's comments.

2.

The main points of the Chinese statement were anticipated in Mr McLaren's minute of 17 September, also attached. We agree generally with Sir P Cradock's commentary.

points:

(a)

(b)

(c)

But it may be worth emphasising the following

the Chinese initially hinted that a statement would be made on the eve

of the Double Tenth (the 70th

anniversary of the revolution led by Sun Yat-Sen on 10 October 1911).

see

Although a further statement may still be made, it is difficult to how it could add substantially to this one;

although most of the proposals enshrined in the statement have been aired in general terms at various times sine 1978, this is much the most specific public statement yet made. It repeats the recent offer of some unspecified role for the KMT in the national leadership; it reiterates the points about a high degree of autonomy and retention of the island's armed forces. Of particular interest to overseas investors and businessmen, it spells out the Chinese position on Taiwan's socio-economic system. Inter alia Taiwan's 'econmic and cultural relations with foreign countries' would remain unchanged following reunification.

And there will be

no encroachment on the propriety

rights and lawful right of inheritance over private property, houses, land and enterprises or on foreign investments';

these points are surely relevant to the Chinese attitude towards Hong Kong

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/and·