TNAG-1166-FCO40-1446-Future-of-Hong-Kong-1982 — Page 104

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PP GOVERNOR HONG KONG

GRS 436

SECRET

DEYOU FOR HONG KONG

DEDIP FOR PEKING

FM FCO 131530Z JAN 82

TU PRIORITY HONG KONG

TELEGRAM NUMBER 33 OF 13 JANUARY

INFO PRIORITY PEKING (DEDIP)

PERSONAL FOR GOVERNOR FROM CLIFT

Redacted under FOI exemption section 27(1)

/YOUR TELNO 30 : PAO AND THE FUTURE OF HONG KONG

ник око

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2.

WHEN PAO SAW PM HE TALKED IN BROADLY SIMILAR LINES. HE

EMPHASISED THE CHINESE DESIRE TO MOVE CLOSER TO UK IN VIEW OF THE

STRAIN IN RELATIONS WITH US. THE CHINESE WANTED TO KNOW WHETHER

UK COULD PROVIDE ASSISTANCE SIMILAR TO LOANS RECEIVED FROM JAPAN,

ONE OF WHICH WAS STATED TO BE AN UNTIED LOAN WITH US DOLLARS 1

BILLION. PAO SAID THAT THE CHINESE WOULD THEN BE HAPPY TO DISCUSS

HONG KONG, THOUGH THIS WAS NOT CONDITIONAL ON THE PROVISION OF A

LOAN. PAO ADDED TO THE PM THAT PEOPLE IN HONG KONG MIGHT BE ABLE

TO HELP WITH LOAN. ON THE QUESTION OF SOVEREIGNTY PAO DESCRIBED

HUANG HUA AS SAYING THAT WHEN THE EXISTING ARRANGEMENT LAPSED IT

WOULD NOT BE POSSIBLE TO ENVISAGE ANY FORMULA IMPLYING ANY DEGREE

OF SOVEREIGNTY FOR HONG KONG. THE CHINESE RECOGNISED THERE WERE

SPECIAL PROBLEMS BUT HAD NOT BEEN ABLE TO THINK OF FORMULA WHICH

WOULD SATISFY ALL. HE WONDERED WHETHER THE BRITISH HAD.

3. THE PRIME MINISTER COMMENTED THAT IT WAS NOT ALWAYS POSSIBLE

TO GRASP FULLY WHAT PAO WAS SAYING. AS YOU YOURSELF POINTED OUT

IN YOUR TELNO 1130, THERE MAY BE CONFUSION BETWEEN PAO'S REPORT

OF THE CHINESE REMARKS AND HIS INTERPRETATION OF WHAT HE BELIEVED

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