TNAG-1040-FCO40-1290-Future-of-Hong-Kong-1981 — Page 202

CONFIDENTIAL

GOVERNMENT SECRETARIAT

布政司署

香港下亞厘畢道

НКК

* OUR REF:

T5 7/1162/46

AS A FEGISTRY NG.

OCT 1981

來函檔號 YOUR REF:

ald

INDEX

We mas!

Well this

R D Clift Esq

میں !

In Tekan

LOWER ALBERT ROAD

HONG KONG

3 October, 1981

Minute.

6. RD. Wielom says, nothing

new here apart from the

Hong Kong & General Department FOO

lee

Jack,

tape.

2. But we that take

07

any opportunity

(eg. LPS not) to hill the idea at X. 3. The reference & Taiwan is interesty

Oern

COMMENTS BY LIAO CHENGZHI ON HONG KONG But on the whole I oce nothing hase which makes it likely that the Chinese

will be ready A prominent Hong Kong businessman, Mr Pong Dingyuen (Shui Wing Steel), with members of his family to concedi including his son Frank, whom I think you know, recently visited Peking. When there, they were entertained by Liao Chengzhi and met Ye Jianying who has family connections with Mrs Pong.

British administrat

continuing, Dep Дир

12/10

2.

Mr Pong senior and Frank came to see me on their return. They said that, at dinner, Liao had made a number of comments about Hong Kong and the future. The gist of these was that, first, he could not go beyond what Deng had already said to the Governor and Lord Carrington, but he wished to make it clear that China wanted Hong Kong to be prosperous. Secondly, he hoped that the Hong Kong Government would take measures to curb speculation and bolster productive industries. (He has said this to other visitors.) Thirdly, he hoped that what he called "various English friends" with whom the Chinese were familiar, e.g. the Governor and Political Adviser, would stay on.

3.

Liao apparently said that he did not mind if these views were passed on including, apparently said half in jest and about his last point, to Mrs Thatcher. The Pongs said that the message would be more authentic if on tape. Liao then repeated what he had said, slightly toned down, on tape. The attached is a translation of the transcript. It is genuine. I have listened to the tape.

4.

Only two other points of interest emerged. One was that Liao and those with him seemed to share the belief,

Xcommon here, that proceeds from land sales are sent to the

British Treasury. Frank Pong tried to disabuse them of this idea. Secondly, Liao referred to impending proposals for reunification with Taiwan and said several times that Hong Kong should study them.

/contd.

CONFIDENTIAL