TNAG-1171-FCO40-1452-Future-of-Hong-Kong-1982 — Page 54

CODE 18.77

Secret

Reference.....

HKK 040/!

1293

Mo Williamson J

HKGD

the

the Mom's was drafting to your instructions. Inilians. future of Hong Kong.

1. M. Morris's dsafts below.

26.5

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AF16

2. I do not agree that Huan's remarks are less worrying than

they first appeared, for the following reasons:

(a) Deng's remarks to the theath envisaged British adduenestration

ending in 1997 but would have been consistent with HIC becoming a virtual autonomous city-state within the PRC- a kind of singapore-in-China. But Huan Xiang spoke of:

PLA control of security forces unified PRC currency integrated custom

<

regulated media & judicial problems for stock exchange

Not only are these alarming in themselves but they take

argurents

away one of own?

viz. ao a

own levers for continuing biritish adnumotration, guarantee of independent currency, Customs en eh.

(1) was not taking the initiative and (!). (b) The facts that thuan/spoke to his escorting office rather than to more senior officials suggests this was no deliberate kite-flying (ie Krying BA impossible ideas on experinced Commentators so that they could be shot down & Huan could report as much to his authoriting). In other words these are either Huan's own sincerely-held aspirations or (as Ses P Cradock suggests) those of the Chinese Goot at present. I expect Hu Qiaomu at least is thinking on these lines. Probably the Yaobang koo.

(c) I doubt that the Australians misunderstood Huan.

Peter Rowe is seattle and experienced (I knew him in Hong Kong and Reking). Huan is a deliberate, careful speake.

Secres

13.