TNAG-1169-FCO40-1449-Future-of-Hong-Kong-1982 — Page 65

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Mr Whitney told me on 26 March.

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There was no reference to the press conference in Hong Kong which Mr Whitney and others have thought was rather mishandled on the subject of Hong Kong's future. But Mr Faulds at one point said that he felt officials in Hong Kong were taking far too relaxed a view about the likely attitude of the Chinese to an extension of the Lease. His own view, based on his observations and a number of enquiries, was that the Chinese would not compromise their principles; they would instead exert efforts over the next 15 years to find alternative sources of foreign exchange and technical expertise; and they would allow the 15 years until 1997 to drift away without ever making a decision. Hong Kong would then revert to them. None of the other MPs took issue with Mr Faulds over this but I think that 'Mr Du Cann at least had a totally different view.

1 April 1982

Hyh

H L1 Davies

Far Eastern Department

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