TNAG-1167-FCO40-1447-Future-of-Hong-Kong-1982 — Page 35

Mr Feirce

HMA

X:

Mr Galtworthy

CONFIDENTIAL

FUTURE OF HONG KONG

PROFESSOR XUE MOUHONG

1. At the Ambassador's dinner for Lord Thomas last night, Professor Xue raised the subject of Hong Kong. He said that when his mother had passed through Hong Kong last year on a transit visa, she had not been allowed to leave the airport for the two days of her stay in the Territory. The Ambassador explained to Professor Xue that negotiations with the Ministry of Foreign Affairs, which would normally permit Chinese citizens in transit to enter Hong Kong and to stay there for seven days, with a possible extention to one month, were at an advanced stage.

Professor Xue then said that he had read the records of Mr Atkins' talks here with Premier Zhao Ziyang and Vice Premier Ji Peng Fei. He said he could not fully understand the British sense of urgency in asking for progress towards a solution of the 1997 problem. explained our reasons for

The Ambassa this to Professor Xue, who said he could well understand them.

3. In the course of the evening the Ambassador and I discussed with Professor Xue the idea that he might be able to visit Britain, under Category 2 arrangements, on his way to the United States, which he is to visit next December Professor Xue said that, although a December visit would save some travelling he would prefer to visit Britain in September or October. (In a separate conversation with Lord Thomas the latter suggested to him that October would be the better month for meeting British academics.)

Professor Xue told me that the future of Hong Kong raised two questions The first was that of China's sovereignty. As 1 would know if only from observing the effects of sovereignty on Sino-US relations at present - this was a very sensitive" issue in China at present. The second aspect of the Hong Kong problem was that of "rights", e.g. economic rights. Professor Xue said that there were no major problems now between Britain and China. China greatly appreciated Britain's foreign policy. This provided a good background for settling the Hong Kong question. He said that "we should be able to work out a formula for settling the question of sovereignty and which could provide for an extenţion of the period of British administration"

5.

visit Hong Kong,

1x

Professor Xue said that he would like to perhaps on his way to Britain. He would like to meet a wide range of people there, including "merchants" and to have talks with the

I said that I was sure this could be arranged.

Politica aviser.

I caught

thin' was

settlers!

CONFIDENTIAL

/6.