CONFIDENTIAL
SECRETARY OF STATE
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Miele 026/3
經瀍糕
ORD
PRIVY
PG02511
SF
FAR EAST TOUR
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Mr. Mc Quat Mr. Williams J25.1 Mr. Man's 257 F
You may wish to have a personal note on my recent trip to the Far East in advance of any formal reports from our Missions. It was both useful and enjoyable. In China, South Korea and Japan the Governments gave me a markedly friendly reception. I was also well looked after in
Hong Kong.
In China I had nearly four hours of useful talks with one of the Vice Ministers in the Ministry of Foreign Affairs (Huang Hua was unfortunately ill at the time and could not receive me). There was a very broad measure of agreement on the current issues such as Poland, Afghanistan and Soviet intentions in general. I was, however, impressed by the vehemence of the Chinese language when they spoke of American sales of aircraft to Taiwan. They argued that it was mistaken of the Americans to suppose that as long as they continued to oppose the Soviet Union, China would be prepared 'to swallow any bitter pill' on other matters. I gave Vice Premier Ji Pengfei notice that I wished to talk about the future of Hong Kong with the Prime Minister, Zhao Ziyang. I had about an hour's conversation with the latter, and did not need to bring up the question, because he brought it up himself. He made it clear the Chinese are now about to begin to focus on the problems created by the ending of the Lease. They have not moved on essentials and are keeping their options open but I was assured that the problem would not be shelved until 1997 and that in considering the future the Chinese will take into account Hong Kong's position as a free port and a commercial and financial centre. The Department will be submitting separately through me on the next moves. The Chinese will expect to discuss the matter again when the Prime Minister goes to Peking in the second half of September, but it is highly improbable that they will be ready to do anything substantive by then. We have quite a job to do with the Press, who will be bound to try to raise expectations that her visit will be the occasion to settle the future once and for all.
In Hong Kong, as expected, I had a fairly rough time with the Executive and Legislative Councils on the vexed questions of the Nationality Bill and students' fees. It gave some of the leading members a chance to get the problem off their chests. They were preoccupied with the fact that they could no longer describe themselves as 'British'. I therefore undertook that we would look sympathetically at ways of helping if people in Hong Kong in practice found travel in third countries more difficult under the new arrangements. (Timothy Raison has already endorsed our commitment to afford full consular and other protection to Hong Kong people travelling overseas).
CONFIDENTIAL
/Hong Kong
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