TNAG-1041-FCO40-1291-Future-of-Hong-Kong-1981 — Page 3

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PERSONAL

Sir John Keswick KCMG

Matheson & Co Ltd

3 Lombard Street London EC3

Entiso

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Foreign and Commonwealth Office

London SW1A 2AH

31 December 1981

286

Miere 0401

ts.er;

attached

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Dear Sir John,

Pas illi

I am sørry it has taken me so long to return your personal paper on ''Hong Kong and China''.

We also

These contributions are always useful and both I and the two Heads of Department to whom I showed it in confidence agreed that it was thought-provoking. thought that it is right to look for solutions on the future that take account of the pragmatic and realistic approach of the present Chinese leadership.

That said, I wonder whether the Chinese would in fact find the proposal politically acceptable for all the economic benefit that would flow from it? The length of your proposed arrangement 100 years is only one of the problems. I wonder also whether the World Bank or the ADB would be prepared to become involved in a semi-political rôle? They would take some convincing.

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I enjoyed our chat and hope that I shall see you soon in the New Year. I am off to Hong Kong on Saturday as part of a trip to China, Japan and Korea.

L

PAPER

Your sincerely,

Alaw Donald

A E Donald

Best writes for 1982.