TNAG-1156-FCO40-1436-Visits-by-FCO-Ministers-to-Hong-Kong-1982 — Page 204

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FM HONG KONG 090248Z JANUARY 82

TO IMMEDIATE F C O

TELEGRAM NUMBER 20 OF 09 JANUARY

FOR NEWS DEPARTMENT

FROM WESTBROOK PS/LPS

.:

PLO 11/1

See 1

1. CLARE HOLLINGWORTH OF THE SUNDAY TELEGRAPH TOLD THE L P S THIS MORNING THAT CHINESE OFFICIAL AND BANKING SOURCES BELIEVED THAT IT WAS NOW CHINESE POLICY THAT BRITAIN SHOULD HAND BACK SOVEREIGNTY OF THE ISLAND OF HONG KONG AND COASTAL KOWLOON AND THAT IN EXCHANGE THE CHINESE WOULD ASK THE BRITISH TO ADMINISTER HONG KONG AND THE NEW TERRITORIES

FOR A SET PERIOD - PROBABLY 30 YEARS. THE L P S IN REPLY

SAID HE HAD NOT GONE TO PEKING WITH ANY FIRM PROPOSALS ABOUT HONG KONG'S FUTURE NOR HAD ANY BEEN PUT TO HIM. HIS CLEAR UNDERSTANDING WAS THAT FAR FROM HAVING AN AGREED POLICY THE CHINESE WERE ABOUT TO STUDY THE MATTER IN DEPTH AND THAT WHEN THEY DID SO THEY WOULD KEEP VERY MUCH IN MIND HONG KONG'S POSITION AS A FREE PORT AND AS A CENTRE OF COMMERCE AND TRADE. (THIS STORY IS TYPICAL OF THE SORT OF SOLUTIONS BEING CANVASSED IN COMMUNIST AND OTHER CIRCLES IN HONG KONG. IT IS ONLY OF SIGNIFICANCE IN CONFIRMING THAT THOUGHT IS BE ING GIVEN TO A SOLUTION).

2. AS FAR AS THE SPECIAL ECONOMIC ZONES WERE CONCERNED THEY WERE

SOMETHING IN WHICH THEY WANTED HONG KONG TO TAKE PART. THEY HAD WELCOMED THE GOVERNOR'S RECENT VISIT AND HE HAD SET ABOUT ENCOURAGING HONG KONG TO INVEST THERE.

3. THE L P S SAID THAT CHINA HAD PROBLEMS IN BUILDING UP THEIR ECONOMY AND APPEARED TO HAVE OVER-REACHED THEMSELVES IN INVESTMENT IN HEAVY INDUSTRY THEREFORE THE EMPHASIS WAS SHIFTING TO LIGHT INDUSTRY AND CONSUMER GOODS. HE BELIEVE D OPPORTUNITIES FOR TRADE WERE THERE.

MACLEHOSE

LIMITED

NEWS D HK&GD FED

LORD N G LENNOX

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