TNAG-1172-FCO40-1453-Future-of-Hong-Kong-1982 — Page 123

HKK 040/1

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SECRET

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for file

FUTURE OF HONG KONG:

я в столь

or wilkanist Hilc Quest

9.6.

331

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OFFICIALS MEETING WITH THE SECRETARY OF STATE,

2 JUNE 1982, 1600 HOURS

1.

Main gist of the meeting is contained in Mr Clift's teleletter

of 8 June (copy attached).

2.

3.

Others present were:

Additional points:

330

Mr Fall, Mr Holmes and Mr Morris.

(a) Mr Clift gave a 10 minute presentation on Hong Kong's past,

present and future;

(b) In the course of a number of questions the Secretary of

State asked whether Taiwan was technically a state or not.

Legal Adviser was not sure. Also asked what sort of currency

the Chinese envisaged for Taiwan under their 9-point proposals;

(c) Mr Fall put forward the idea of a lease-back but with an

acknowledgement of China's sovereignty over the whole of Hong Kong written into it;

(d) The Secretary of State wondered whether we ought to start

discussions with the Chinese before the PM's visit. Mr Giffard

advised an unhurried and cautious approach;

(e) The Secretary of State approved the idea of Sir Murray

MacLehose being the first to broach the subject of the future

(including sovereignty) with the PM; this could be done during a farewell call by Sir Murray. A wider meeting might be held

subsequently during Sir P Cradock's leave. Private Office would

now approach No 10;

(f) The Secretary of State also agreed to see Mr Heath again

soon.

4. The meeting lasted 45 minutes.

9 June 1982

SECRET

R D Clift

Hong Kong and General Department