TNAG-1166-FCO40-1446-Future-of-Hong-Kong-1982 — Page 7

GRS 400

CONFIDENTIAL

CONFIDENTIAL.

FM KUALA LUMPUR 870645Z FEB 82

AKに

04011

TO PRIORITY FCO

TELEGRAM NUMBER 59 OF 7 FEBRUARY

AND TO PRIORITY SINGAPORE, ROUTINE JAKARTA MANILA BANGKOK PEKING

HONG KONG WASHINGTON NEW YORK UKMIS. 产

FOLLOWING FROM PRIVATE SECRETAY

SECRETARY OF STATE'S VISIT: TALKS WITH FOREIGN MINISTER.

Paro 10/2

1. THE SECRETARY OF STATE HAD AN HOUR AND A HALFS TALK WITH GHAZALI BEFORE DINNER ON 6 FEBRUARY. FOR CAMBODIA/VIETMNAM PLEASE SEE MIFT (NOT TO HONG KONG). FOLLOWING IS SUMMARY OF OTHER POINTS:

CHINA

2. IN RESPONSE TO A QUESTION, GHAZALI IMPLIED THAT THE PRESENT DIFFICULTES BETWEEN THE US AND CHINA WERE A PHASE WHICH WOULD NOT LAST. THE CHINESE WOULD FIND IT NECESSARY TO MAKE NOISES IN PUBLIC, BUL THEY WOULD BE LIKELY TO LEAVE IT AT THAT IF THE UNITED STATES WERE QUOTE BOLD ENOUGH AND PATIENT ENOUGH UNQUOTE AND IF THEY EMPHASISED THAT THEIR RELATIONSHIP WITH TAIWAN WAS PART OF A GLOBAL STRATEGY AND NOT DESIGNED TO HELP TAIWAN AGAINST CHINA, CHINA WOULD NOT SEEK A CLOSER RELATIONSHIP WITH THE SOVIET UNION UNTIL IT WAS ABLE TO DO SO FROM A POSITION OF STRENGTH.

HONG KONG

3. LORD CARRINGTON MENTIONED THE PROBLEM OF INVESTOR CONFIDENCE AND WONDERED WHETHER THE CHINESE WOULD SETTLE FOR A SOLUTION ON THE LINES OF WHAT THEY HAD PROPOSED OVER TAIWAN. GHAZALIS FIRST REACTION WAS TO SAY THAT NO CHINESE GOVERNMENT HAD RECOGNISED THE LEASE, BUT HE AGREED THAT IN PRACTICAL TERMS THE CHINESE WERE AWARE THAT THERE WAS A PROBLEM.

IN HIS VIEW, INVESTORS SHOULD SIMPLY CARRY ON. THE CHINESE WOULD LET THINGS BE, BUT HE DOUBTED WHETHER WE WOULD GET A QUOTE PIECE OF QUOTE PAPER UNQUOTE UNQUOTE. HE ADDED THAT THE APPOINTMENT OF SIR E YOUDE WAS AN EXCELLENT CHOISE AT A TIME WHEN IT WOULD BE IMPORTANT TO TALK TO THE CHINESE.

BRUNEI

4. LORD CARRINGTON ASKED GHAZALI WHETHER HE WOULD SEE ANY OBJECTION TO THE GURKHAS REMAINING IN BRUNEI AFTER INDEPENDENCE, GHAZAL I REPLIED WITHOUT HESITATION THAT HE WOULD NOT AND THAT THEY SHOULD BY ALL MEANS STAY IF THAT WAS WHAT WAS WANTED. HE WAS DISMISSIVE OF POSSIBLE DIFFICULTIES IN GETTING POST-INDEPENDENCA BRUNE! TAKEN OFF THE AGENDA OF THE UN COMMITTÉE OF 24.

5. GHAZALI THEN RAISED THE QUESTION OF BRUNEI REPRESENTATION AND ASKED THAT WE SOULD TWAKE THE INITIATIVE IN PROPOSING TO THE SULTAN THAT THE BRUNEI AGENCY IN LONDON BE RAISED TO THE STATUS OF COMMISSION. THERE WERE GOOD PRECEDENTS FOR THIS IN THE CASE OF

CONFIDENTIAL

/ MALAYA

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