TNAG-1159-FCO40-1439-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 126

Dan John.

CONFIDENTIAL

MRK

02610-

Foreign and Commonwealth Office

London SW1A 2AH

9 July 1982

A

Pass 2112

(83A)

Prime Minister's Visit to Japan

174

China and Hong Kong

Thank you for your letter of 5 July to John Holmes. We have noted the Prime Minister's wishes on the programme and on the meetings about Hong Kong. We agree that it would be useful for Sir Percy Cradock and Sir Hugh Cortazzi to have separate meetings with the Prime Minister on 28 July.

We

In addition, it would be helpful to know the Prime Minister's views on which officials should attend the briefing meeting on the future of Hong Kong on 28 July. suggest that, in addition to the Secretary of State and his FCO advisers, the Prime Minister might find it useful to have the advice of Sir Percy Cradock (who will be in England at the time) and Sir Edward Youde (who could usefully return for consultations at this stage). There should be no undue speculation about this and it would seem perfectly normal for the Prime Minister to get the views of the Governor before such an important visit.

The Prime Minister's dinner with the Chinese Ambassador on 12 July is a gesture of courtesy and is now the custom whenever particularly distinguished British visitors go to China. On such occasions it is not usually the Chinese practice to discuss substantive bilateral business, especially if the issues are contentious. Nor does Mr Pym think that there would be advantage in raising the question of the future of Hong Kong on this occasion. If, rather against the odds, the Ambassador seemed to want. to probe our position, the Prime Minister might take the line that she was looking forward to discussing the question, which is obviously complicated, during her visit to Peking and that she hoped to make progress towards an eventual solution which would take account of both Governments' interests and the continuing prosperity of Hong Kong. There would of course be no harm in commenting on the existing helpful cooperation between China and Hong Kong and the excellent state of Sino-British relations.

At the dinner, the Chinese Ambassador is likely to make a short and general speech after the first or second course, in which he will call for a toast to the success of the Prime

/Minister's

CONFIDENTIAL