TNAG-1166-FCO40-1446-Future-of-Hong-Kong-1982 — Page 6

GPS 130

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG 9807052 FEB 82

TO PRIORITY FCO

TELEGRAM NUMBER 180 OF 8 FEBRUARY

INFO PRIORITY PEKING

47

Hier 04.

Plas

ulri

Seelbla

49

YOURTELNO 48 TO PEKING: FUTURE OF HONG KONG.

1. SCMP AND OTHER LOCAL PAPERS (INCLUDING TA KUNG PAO AND WEN WEI PO) YESTERDAY CARRIED A REUTERS DESPATCH FROM PEKING, DATED

6 FEBRUARY. AN 'OFFICIAL CHINESE SOURCE' WAS REPORTED AS SAYING THAT CHINA WANTED HONG KONG TO MAINTAIN ITS STATUS AS A FREE PORT

AND A CENTRE OF BUSINESS AND FOREIGN TRADE. THE SECOND PRONG

OF PEKING'S POLICY WAS THAT ''CHINA'S SOVEREIGNTY MUST BE SAFEGUARDED''. BUSINESSMEN SHOULD CONTINUE TO INVEST IN HONG KONG AND CHINA COULD NOT BE BLAMED IF THEY FAILED TO DO SO. MANY PEOPLE WERE WORRIED ABOUT THE FUTURE OF HONG KONG BUT **AN APPROPRIATE WAY WILL BE FOUND''. SO FAR NO THOROUGH STUDIES HAD BEEN MADE BUT THERE WAS TIME ENOUGH TO WORK OUT A FORMULA.

2. PEKING MAY WISH TO TAKE ACCOUNT OF THIS REPORT IN COMMENTING ON THE EARLIER ONE.

MACLEHOSE

LIMITED

нктад

FED

P5

THIS TELEGRAM

WAS NOT

ADVANCED

566

PSILPS

PSIPUS

SIR -L. ALLINSON

CONFIDENTIAL