TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 118

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PART IV

Recommendations for the Prime Minister's Visit to Peking

34.

In her talks with Chinese leaders about Hong Kong the

Prime Minister's main objectives should be:

(a)

(b)

(c)

to secure Chinese agreement that negotiations about the future should begin very soon on a basis acceptable to both sides, and that this agreement be registered in a joint statement in terms which will strengthen confidence in Hong Kong;

failing this, to ensure as far as possible that any public statements made from the Chinese side during or after the visit represent a sufficient step forward to maintain confidence in Hong Kong;

throughout the discussions and the follow up, to avoid a damaging confrontation with the Chinese.

35.

Much will depend on how the Chinese play their hand during

the talks. But the evidence suggests strongly that the Chinese

will assert that:

(i)

the whole of Hong Kong is Chinese territory.

is to them a matter of principle and Chinese

sovereignty must be 'recovered';

This

(ii)

Subject to this, they wish to preserve the

prosperity and stability of Hong Kong;

(iii)

Their present thinking is that this could be

achieved by making Hong Kong a 'Special Administrative

Region' of China largely run by Hong Kong Chinese

under a regime which would preserve the capitalist

system, existing law etc. Some British civil

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/servants