TNAG-1166-FCO40-1446-Future-of-Hong-Kong-1982 — Page 58

SUBJECT: LORD PRIVY SEAL'S MEETING WITH THE ANGLO-HONG KONG

PARLIAMENTARY GROUP:

WEDNESDAY, 27 JANUARY 1982

Points to Make

FUTURE OF HONG KONG

1. Spent 4 days in China.

Series of discussions, in particular

with Premier Zhao Ziyang and Vice Premier Ji Pengfei. Discussed

future of Hong Kong with both.

2. Clear to me that the Chinese:

a) are addressing their minds to the problem;

b) will be studying it soon, taking into account Hong Kong's

value as a free port and centre of commerce and trade, which

they regard as very important;

c)

realise something has to be done before 1997;

d) do not want prosperity of Hong Kong damaged.

Positive and encouraging so far as it goes.

3. No concrete Chinese proposals because they do not have a

position yet. We will not force the issue. Very careful handling

needed in order to maintain confidence.

PRIME MINISTER'S VISIT

4. Mrs Thatcher expected to visit China in September 1982. Her

first as Prime Minister, indeed first by any British Prime Minister.

Future likely to be raised but of course wrong to expect very rapid

progress.

CHINESE CONSULTATION OF PEOPLE IN HONG KONG[DEFENSIVE]

5. Not clear how they would do this. Chinese survey might be

rather