TNAG-1171-FCO40-1452-Future-of-Hong-Kong-1982 — Page 117

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TELELETTER

FROM A E DONALD AUSS

FILE REFERENCE HKK 040/1 DATED 17 MAY 1982

FOLLOWING FOR SIR PERCY CRADOCK KCMG PEKING

See (26

SIR P HADDON-CAVE KBE CMG ACTING GOVERNOR HONG KONG

FUTURE OF HONG KONG: SECRETARY OF STATE'S MEETING WITH

SIR M MACLEHOSE AND SIR E YOUDE: 11 MAY 1982

1.

283A

THE FOLLOWING IS THE SUMMARY RECORD OF THE DISCUSSION.

LORD BELSTEAD AND OFFICIALS ALSO ATTENDED.

2. SIR E YOUDE AND SIR M MACLEHOSE EXPLAINED THE COMMON BRITISH

AND CHINESE INTEREST IN HONG KONG'S STABILITY AND PROSPERITY AND

THE RESPECTIVE VIEWS ON THE CONSTITUTIONAL POSITION. THE CHINESE

REALISED THAT CONFIDENCE IN HONG KONG COULD BE AFFECTED WITHIN

TWO OR THREE YEARS. DENG XIAOPING HAD PUT TENTATIVE IDEAS TO

MR HEATH IN MARCH ENVISAGING HONG KONG'S ASSIMILATION TO CHINA AS

A FORM OF AUTONOMOUS ZONE. THE CHINESE STRESSED THE ALLEGED

ANALOGY WITH THE TAIWAN SITUATION BUT IN PRACTICE THE TWO PROBLEMS

WERE DIFFERENT IN THAT TAIWAN WAS RUN BY CHINESE WHILE HONG KONG'S

STABILITY AND PROSPERITY DEPENDED UPON BRITISH ADMINISTRATION.

THE CHINESE PUT MUCH WEIGHT ON THE ENDORSEMENT OF THEIR

SOVEREIGNTY OVER THE WHOLE TERRITORY. IT MIGHT BE POSSIBLE TO

OBTAIN A DEAL ENSURING CONTINUATION OF BRITISH ADMINISTRATION MORE

EASILY IF HMG WERE TO RECOGNISE CHINESE SOVEREIGNTY OVER THE WHOLE

TERRITORY.

3. SIR M MACLEHOSE SAID THAT THIS SHOULD NOT BE IN THE FORM OF

A RENEWED LEASE WHICH WOULD BE POLITICALLY UNACCEPTABLE TO CHINA.

NEVERTHELESS, SINCE IN ANY CASE SOVEREIGNTY OVER THE NEW

TERRITORIES WOULD REVERT TO CHINA IN 1997 IT WOULD MAKE GOOD SENSE

FOR US TO BARGAIN ON THESE LINES. THE BRITISH AND CHINESE

POSITIONS WERE NOT IN FACT VERY FAR APART. THE QUESTION WAS

WHICH CAPITAL SHOULD HAVE THE REAL POWER OF DIRECTION OVER HONG

KONG AFFAIRS LONDON OR PEKING.

4. THE SECRETARY OF STATE ASKED ABOUT THE VIEWS OF PEOPLE IN

HONG KONG. SIR M MACLEHOSE SAID THAT IT WAS GENERALLY ACCEPTED

copied to Ps

explod Beldlead

PS | Pus Mr Gifford Mr Dmald

Head | HIGGO Head | Fed

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