TNAG-1041-FCO40-1291-Future-of-Hong-Kong-1981 — Page 45

DSR 11C

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-2-

Humphrey Atkins should take the opportunity of putting down

a marker both with the Chinese and the Japanese that you

hope in principle to visit in the second half of September.

The Chinese will certainly expect us to suggest dates soon

the Hong Kong press is already saying that you are to go in

September. They are almost bound to question Humphrey on

this and subject to your views and the reaction of the

governments concerned, he could confirm that you are indeed

planning a visit in the Autumn. We could then start working

out the programme in more detail.

3.

I have of course very much in mind the fact that the

subject of Hong Kong is bound to come up if you go to Peking.

Indeed you agreed with Hua Guofeng in 1979 that you would

keep in touch on the problem. I raised it when I was in

'

Peking in April and the Chinese 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 soluti

is about to emerge, or at least that negotiations to find a

solution will be set in hand. We shall need to try to induce

the Chinese to look at the problem realistically while

guarding against euphoria in Hong Kong leading to

disillusionment. We must play a rather flexible hand.

4.

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

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