TNAG-1150-FCO40-1430-Relations-between-Hong-Kong-and-the-European-Community-1982 — Page 6

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SUBJECT: ANGLO-FRENCH SUMMIT: 4/5 NOVEMBER 1982

FUTURE OF HONG KONG

POINTS TO MAKE

1. Our goal was to start talks aimed at maintaining

Hong Kong's stability and prosperity. Achieved. Meetings

have begun in Peking through diplomatic channels.

confidential.

Content

No timetable. Well-known differences of

view on sovereignty but common aim is to seek ways of

maintaining stability and prosperity. Treaties can be

varied by agreement. Meanwhile, important to maintain

confidence in Hong Kong.

Enclosures-flag(s)...........

BACKGROUND

2. Prime Minister's discussions in Peking in September

led to agreement to enter talks through diplomatic channels

with common aim of maintaining Hong Kong's stability and

prosperity. Chinese position on the treaties and sover-

eignty is well-known. Therefore difference of approach

to solution inevitable. Concern in Hong Kong has shown

itself on the stock exchange and dollar rate, but other

factors also involved. Offers of help: appreciated but

not to be taken up at this stage.

CONFIDENTIAL