TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 13

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TAS)

5.

It would obviously be valuable for the Secretary of State

to have another discussion with Mr Heath, preferably after about

2 weeks. The delay would enable us to seek further reactions

from the Ambassador in Peking and the Governor of Hong Kong, who

have already sent their first thoughts. (Peking Telegram No 209

and Hong Kong Telegram No 328).

6. The issue of sovereignty is a key one for China, while the

continuation of British administration is likely to be a major

concern on our side, in maintaining confidence in Hong Kong.

The problem is thus complex and we shall therefore be submitting

a full brief on the future of Hong Kong. I suggest that it would

in addition be helpful if the Secretary of State had an oral

briefing from officials and Sir E Youde (if he is available)

before the meeting with Mr Heath.

14 April 1982

Handmade

H McQuade

Hong Kong and General Department

сс

Mr Elliott FED

1. I very much agree that it would be useful if the Secretary of State could discuss this matter further with Mr Heath towards the end of April.

2. I am sure it is right that we should not be rattled by the conversation between Vice Chairman Deng and Mr Heath. Clearly the Chinese are sending us a signal and will be confident that

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/Mr Heath