GAS 650
SECRET
SECRET
FM HONG KONG 200712Z MAY 82
TO PRIORITY F C O
TELEGRAM NUMBER 524 OF 20 MAY
TOP COPY
INFO PRIORITY PEKING (PERSONAL FOR AMBASSADOR)
PERSONAL FOR DONALD
FROM HADDON-CAVE
MIP T: FUTURE OF HONG KONG
HIK 040/1
DRIVES I RECAST. me. 51 21 MAY 282
278
1. FOLLOWING IS TEXT OF AUSTRALIAN TELEGRAM :
279
2794
See All
283
BEGINS
DURING HIS SOVF VISIT TO AUSTRALIA, HUAN XIANG (VICE PRESIDENT
ACADEMY OF SOCIAL SCIENCES) MADE A NUMBER OF INTERESTING COMMENTS TO
US ON CHINA'S THINKING ON THE FUTURE OF HONG KONG. HUAN SEEMED
TO SPEAK WITH CONSIDERABLE KNOWLEDGE AND SOME AUTHORITY ON THE VARIOUS ASPECTS INVOLVED. THE MAJOR POINTS OF INTEREST WERE:
A). CHINA WOULD EXERCISE ITS SOVEREIGNTY OVER HONG KONG (JUST AS IT INTENDED TO DO WITH TAIWAN). CONTINUED BRITISH ADMINISTRATION
AFTER 1997 WITH A RECOGNITION OF CHINESE SOVEREIGNTY WAS NOT REPEAT NOT FEASIBLE.
B). THE THREE PARTS OF HONG KONG WOULD BE REGARDED AS ONE ENTITY, AND THE QUESTION WOULD BE HANDLED AS ONE ISSUE, SINCE HONG KONG/KOWLOON COULD NOT SURVIVE WITHOUT THE NEW TERRITORIES.
C). CHINA REALISED THAT THE HONG KONG QUESTION HAD TO BE SETTLED
DURING THE NEXT TWO OR THREE YEARS WITH THE CHANGEOVER OCCURING
DURING THE LAST FIVE YEARS OF THE NEW TERRITORIES LEASE.
D). CHINA WAS EXAMINING THE CONCEPT OF HONG KONG OPERATING AS
A **FREE PORT''.
E). IN ANY SOLUTION, PRIVATE PROPERTY WOULD BE RESPECTED, AND CHINA WOULD WANT TO SEE THE INSTITUTIONS OF HONG KONG REMAIN. HOWEVER, HONG KONG WOULD BE UNDER CHINESE LAW AND THE SECURITY FORCES WOULD
BE INTEGRATED WITH THE PLA. (THE POLICE FORCES COULD BE SUBJECT TO LOCAL CONTRAL, AS IN CHINA). IT WOULD BE VERY DIFFICULT FOR THE
STOCK EXCHANGE TO CONTINUE OPERATING. CUSTOMS WOULD BE INTERGRATED
WITH CHINA AND THE CURRENCY UNIFIED. THE MEDIA AND THE JUDICIARY
WOULD BE CONTROLLED BY REGULATION'', THOUGH IT WOULD NOT BE ''APPROPRIATE FOR THEM TO BE SUBJECT TO PARTY LEADERSHIP.
SECRET
/ F) CHINA
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