TNAG-1170-FCO40-1450-Future-of-Hong-Kong-1982 — Page 20

210

1198

GR 620

SECRET

FM PEKING 170045Z APR 32

TO PRIORITY F C O

TELNO 229 OF 17 APRIL

SECRET

INFO PRIORITY HONG KONG (PERSONAL FOR GOVERNOR).

FCO TELNO 254 TO HONG KONG: FUTURE OF HONG KONG

HITK 040 ||

RECEIVED IN PADY

DESK OFFE

INDEX

८५.८

30/4

NO 1. FROM MY TELNO 222, WHICH CROSSED WITH YOURS, IT WILET HOPE BE

WILL CLEAR THAT THERE HAS BEEN SOME MISUNDERSTANDING OF WHAT I AM PROPOSING. I AM NOT SUGGESTING NEGOTIATIONS, WHICH OF COURSE MUST AWAIT DECISIONS BY MINISTERS. I AM PROPOSING IN EFFECT THAT WE PUT ASIDE THE POLITICAL POINTS FOR THE MOMENT AND CONCENTRATE ON GETTING THE CHINESE TO UNDERSTAND THE FINANCIAL AND ECONOMIC REALITIES OF HONG KONG. DENG'S PROPOSAL REVEALS CONSIDERABLE CHINESE MISUNDERSTAND -ING, WHICH NEEDS EARLY CLEARING UP. AS THE GOVERNOR SAYS (HK TELNO 328) AN URGENT EDUCATIVE PROCESS IS NEEDED. WE CANNOT RELY SOLEY ON HONG KONG BUSINESSMEN. I AGREE THE CHINESE WILL LISTEN TO THEIR OWN ECONOMIC ADVISERS. IT IS PRECISELY BECAUSE OF THIS THAT WE MUST TRY TO EDUCATE THEM.

2. IT FOLLOWS FROM THIS THAT I DO NOT AGREE WITH THE COMMENTS IN PARA 5 OF TUR. WE SHALL BE MAKING NO PROPOSALS. WE SHALL BE TELLING THE CHINESE HOW HONG KONG WORKS. WE WOULD HOPE THE NEED FOR CONTINUING BRITISH ADMINISTRATION WOULD EVERGE IN DISCUSSIONS. WE WOULD NOT PROPOSE IT, OR ANYTHING ELSE, THOUGH IF ASKED BY THE CHINESE WHETHER WE THOUGHT IT ESSENTIAL FOR PROSPERITY WE WOULD

CERTAINLY SAY YES.

3. SINCE IN ANY REPLY TO THE M.F.A. I WOULD NEED TO REFER TO DENG'S REMARKS, IT WOULD PROBABLY BE WISE TO ANTICIPATE ANY QUESTIONS ON SOVEREIGNTY BY SAYING THIS IS A LARGE ISSUE, THAT WE ARE STUDYING THE POLITICAL POINTS THE CHINESE HAVE MADE AND WE SHALL NEED TIME

TO RESPOND. IF NEED BE THIS POSITION COULD IN MY VIEW BE HELD

WITHOUT SERIOUS DIFFICULTY UNTIL THE TIME OF THE PRIME MINISTER'S

VISIT.

4. I CANNOT BE SURE OF THE SUCCESS OF THE COURSE PROPOSED, BUT IT WOULD ALLOW US TO MAKE AN INTERIM RESPONSE BEFORE MINISTERS DECIDE ON THE POLITICAL ISSUES. I SEE GREATER DANGER IN APPEARING TO IGNORE DENG'S PROPOSALS. SINCE 1979 SENIOR BRITISH VISITORS HAVE I PRESSED ON THE CHINESE THE NEED TO TACKLE SOON THE PROBLEM OF HONG KONG. THE CHINESE HAVE AT LAST RESPONDED TO THIS PRESSURE. WE HAVE AN INITIAL OFFER FROM THE TOP. IF THIS IS NOT A MESSAGE I DO NOT KNOW WHAT IS. WE REBUFF THE CHINESE, AND LOSE CREDIBILITY, IF WE LET IT LIE. THERE IS, ALSO THE DANGER THAT IF WE DO NOT, AS THE GOVERNOR SUGGESTS, SEEK TO TURN THE DISCUSSION AWAY FROM DENG'S IDEAS, THEY MAY WELL CRYSTALLISE IN THEIR PRESENT FORM. IN THIS HIERARCHICAL SYSTEM THE PRONOUNCEMENTS OF SENIOR LEADERS, ESPECIALLY DENG, CAN RAPIDLY BECOME TABLETS OF STONE.

SECRET

/5.

す

Pam 3314

Sec

LLA

267