TNAG-1041-FCO40-1291-Future-of-Hong-Kong-1981 — Page 36

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will certainly be expecting you to take the matter up as well. As you know, we have good reasons to try to encourage the Chinese to cooperate in preserving confidence and stability in Hong Kong. The difficulty is that the Chinese are in no hurry to come to grips with the problem and there can be no guarantee that they will want to tackle it in substance by next Autumn. Against that people in Hong Kong, and investors outside who are interested in doing business there, will expect the problem to be a key issue

during your talks with the Chinese and there may well be very

strong expectations that a solution is about to emerge, or at

least that negotiations to find a solution will be set in hand.

shall need to try to induce the Chinese to look at the problem

realistically while guarding against euphoria in Hong Kong leading

We must play a rather flexible hand.

to disillusionment.

4.

We

It will of course be very important to get the lead up to

your visit right. Humphrey Atkins' visit will be an important link. As I see it, he should not try to pre-empt any substantive

discussions which you may have. There is always a risk of scaring

the Chinese off by pushing them too fast. But he should try to

establish whether there have been any shifts in Chinese thinking

since we last tackled them and to see what line they would be

likely to take with you. He will also be able to talk the matter over with Murray MacLehose and the Ambassador in Peking and discuss

the whole question with me on return. I would then put our views

to you and perhaps at that stage suggest a line for the handling

of your visit which could be discussed with colleagues in OD or

some other suitable forum.

5. It would be very helpful to know whether you agree with

this general plan and in particular to have before Christmas your

views on what Humphrey Atkins might say about your Far East visit.

This will enable him to get his line sorted out before he leaves

on 2 January.

sorted

;

Foreign and Commonwealth Office

15 December 1981

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(CARRINGTON)