TNAG-1041-FCO40-1291-Future-of-Hong-Kong-1981 — Page 6

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in Hong Kong. He reportedly added, in response to a question, that even though China did not recognise the treaties with Britain she would have regard to the date 1997; it was not certain whether China would then wish to regain control of Hong Kong immediately; if she did decide on recovering Hong Kong it would be by negotiation with the British Government. official commented that Hong Kong would not be viable without the New Territories and that differing lease terms issued by the British in Hong Kong were a factor which might be taken into account by the Chinese Government.

1977: According to a press report Liao Chengzhi, a senior party official concerned with overseas Chinese and Hong Kong affairs, told a group of Hong Kong businessmen: "As far as Hong Kong is concerned we will worry about it after we have liberated Taiwan. In the meantime you people in Hong Kong should work for the prosperity of Hong Kong". In an article published in Red Flag (November 1977) the Chinese Minister of Foreign Trade, Li Qiang said: "Hong Kong and Macao are part of the territory of our country and 98 per cent of their population are our compatriots. problem of Hong Kong and Macao is one that has been left over from history and will be settled in an appropriate way when conditions are ripe..."

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1979: Deng Xiaoping told the Governor of Hong Kong that China had a consistent policy: sovereignty over Hong Kong belonged to China. But Hong Kong had its own special status Any solution would have as its prerequisite that Hong Kong was part of China, but ... China would respect the special status of Hong Kong In this century and the beginning of next century Hong Kong would be continuing with a capitalist system while China was continuing with a socialist system. By 1997 China might take over Hong Kong. But this would not affect its economy. There were two solutions by 1997, to take Hong Kong over, or to allow present realities to remain. Whatever solution was adopted, investors would not be affected.

1980: During a visit to London in October 1980, Foreign Minister Huang Hua reaffirmed the Chinese position in standard terms. He subsequently commented to Sir E Youde that the problem of land leases in the New Territories was a complex problem with both legal implications and implications for China's position on sovereignty, adding that both sides should study the issues involved.

1981: In conversation with Lord Carrington in Peking in April 1981, Deng Xiaoping repeated his assurances about the security of investments in Hong Kong, adding that in considering Hong Kong, the British should look at Chinese policy towards Taiwan. Mr Ito, then Japanese Foreign Minister told Lord Carrington in April that the Chinese had said to him that they had not yet made up their mind about the future of Hong Kong.

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