TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 28

CONFIDENTIAL

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Mr Clift

(HKGD)

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2 3 JUN 1982

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C4E8/61 Pam 2 1/6

PS/Mr Hurd

PS/Lord Belstead

PS/PUS Mr Giffard

Future of Hong Kong

Mr Donald FED

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186

Mr Heath saw the Secretary of State, together with Mr Hurd, briefly after the Falklands debate on 7 April. Before the meeting I was able to show the Secretary of State Peking telno 202 about Mr Heath's call on Deng Xiaoping and a copy of your short note on Hong Kong submitted to brief the Secretary of State on the subject. I was not present,/ I understand that Mr Heath described his interview with Deng Xiaoping along the lines of Peking's telegram. He stressed that Deng Xiaoping had been making detailed proposals and was reading from a piece of paper. There was no doubt in Mr Heath's mind that the British Government was intended to take what Deng Xiaoping had said very seriously and in effect as a Government- to-Government communication. Mr Heath was himself convinced that we should indeed take it very seriously. The Secretary of State suggested that it might be useful for Mr Heath to come into the Office in due course to talk further about this. Mr Heath said he would be very happy to do this.

Mr Heath also said that, contrary to the impression he had been given by the Embassy in Peking, it was quite clear that Deng Xiaoping was firmly in control of Chinese policy and intended to remain so for a very long time.

I note that we are expecting considered comments from Peking on Mr Heath's visit. When these have come in, it would be useful to have your advice on whether a further meeting with Mr Heath would be useful and how this should now be handled, given the Prime Minister's close personal interest.

8 April 1982

J.ε. Holmes

E Homes)

CONFIDENTIAL