TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 59

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The AFP correspondent in Peking reported on 19 January that a "high ranking diplomat" (identified by the British Embassy as Deputy Foreign Minister Zhong Xidong) had said that "China hopes to resolve the prob- lem of Hong Kong's future so as to ensure a continued British presence while not jeopardising her own sovereignty" and that "China has made no decision on Hong Kong... but will open negotiations with Britain once

it has made a decision".

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7. A Reuters despatch from Peking dated 6 February quoted an "official Chinese source" (also believed to be Zhong Xidong) as referring to Hong Kong's importance as a free port and business centre, adding that China's sovereignty must be safeguarded. He acknowledged that many people were worried about Hong Kong's future but said that "an approp- riate way will be found", adding that while no thorough studies had been made so far there was time enough to work out a formula.

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ཀ་རྗ 8. Sir Y K Pao told the Secretary of State in March of a comment made to him by Han Kehua (a former Deputy Foreign Minister) that he should

study the Macao precedent. Sir Y K interpreted this as meaning that a crucial element would be acknowledgment of Chine se sovereignty, (Although there are conflicting accounts on this point, it is widely believed that during the negotiations on opening Sino-Portuguese diplomatic relations in 1979, the Portugue se gave a confidential under-

taking to the Chinese that they recognised that Macao was Chine se territory to be handed back at some future date).

9. In a talk with Lord Rhodes on 10 March Deputy Foreign Minister Zhang Camming. repeated the two principles stated by Zhao Ziyang to the Lord Privy Seal (paragraph 2 above).

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