TNAG-1170-FCO40-1450-Future-of-Hong-Kong-1982 — Page 22

204

Flag E

GRS 300

SECRET

FM HONG KONG 161025Z APR 82

TO PRIORITY FCO

SECRET

TELEGRAM NUMBER 360 OF 16 APRIL

INFO PEKING

208)

FOR YOUDE FROM/GOVERNOR.

YOUR TELNO 254: FUTURE OF HONG KONG.

HKK04011

RECEIVED IN BAROKA

1 S APP 099

DESK OFFIC.

INDEX

2.0.51

دله

"AY

Taken

30/4 Punholy

1. I AGREE THAT DENG WAS SENDING US A MESSAGE (SEE ALSO PARA 5). IT IS SATISFACTORY THAT AT LEAST THE CHINESE HAVE NOW FOCUSSED ON THIS PROBLEM AND APPEAR TO BE WORKING OUT PROPOSALS.

2. THE QUESTION IS HOW WE CAN INFLUENCE THIS PROCESS SO THAT THE REALITIES ARE TAKEN INTO ACCOUNT AT THE FORMATIVE STAGE.

(20)

3. I AGREE WITH PERCY CRADOCK THAT IN THE FINAL ANALYSIS THERE IS NO SUBSTITUTE FOR AMBASSADOR/MFA ACTION PROVIDED IT IS AT THE RIGHT LEVEL (PARA 5 OF HIS TELNO 222), BUT THE QUESTION OF TIMING

IS VITAL. 4. WHILE IT WOULD BE USEFUL TO HAVE AN IDEA OF MINISTERS' VIEWS, I DO NOT THINK WE NEED TO WAIT UNTIL DETAILED BRIEFS HAVE BEEN APPROVED BEFORE DOING WHAT WE CAN TO BRING HOME TO THE CHINESE THE IMPLICATIONS OF MAINTAINING HONG KONG AS AN INTERNATIONAL CENTRE OF COMMERCE AND FINANCE AND RETAINING CONFIDENCE. MOREOVER IN REFERRING US TO THE 9 POINTS ON TAIWAN, THE CHINESE HAVE GIVEN US AN OPENING TO POINT OUT THAT THE MAJOR DIFFERENCE LIES IN UK RESPONSIBILITY FOR HONG KONG, AND THAT THIS IS A FACTOR WHICH MUST BE TAKEN INTO ACCOUNT IN CONSIDERING CONFIDENCE AND THE TERRITORY'S

PROSPERITY.

5. I HAD A LONG CONVERSATION WITH WANG KUANG ABOUT ALL THIS OF WHICH I SENT RECORD UNDER COVER OF A LETTER TO ALAN DONALD AND PERCY CRADOCK ON 13/4 BUT UNFORTUNATELY IT WILL ONLY LEAVE FOR LONDON AND PEKING BY BAG A17 ON APRIL 20. I SUGGEST YOU READ THIS BEFORE CONSIDERING THIS FURTHER. WANG TOOK MUCH THE SAME LINE AS DENG DID WITH HEATH, BUT IN MORE DETAIL, AND HE CONFIRMED THAT SO FAR THE CHINESE HAVE NO FIXED PROPOSAL, THOUGH THE IMPLICATION OF WHAT THEY WILL TURN OUT TO BE IF PRESENT LINES OF THINKING CONTINUE ARE FAIRLY CLEAR. IN REPLY, I SPELT OUT FOR HIM ON A PERSONAL BASIS THE FACTORS WHICH GOVERN HONG KONG 'S PROSPERITY AND WHICH ARE INTERCONNECTED.

.MACLEHOSE

see

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HK&GD

FED

PS

PS/LORD BELSTEAD

PS/PUS

MR GIFFARD

MR DONALD

SECRET

COPIES TO:

SIR E YOUDE

C/O HK&GD

THIS TELEGRAM

WAS NOT ADVANCED