TNAG-1173-FCO40-1465-Future-of-Hong-Kong-special-study-by-FCO-for-the-Prime-Minis-1982 — Page 290

8

GR 600

SECRET

DESKBY 23083OZ

FM HONG KONG 230552Z AUG 82

TO IMMEDIATE F C O

TELEGRAM NUMBER 905 OF 23 AUGUST

SECRET

COP COPY

FOLLOWING PERSONAL FOR CLIFT (HKGD)

M.L.F.T.

FOLLOWING ARE COMMENTS ON THE DISCUSSIONS IN PEKING

HICK 040/3.

PAVED IN KILO #116)

23 AUC 282

서

A649

See

(12

PARAS 33 37 SEEM TO ME THE WEAKEST PART OF THE PAPER. THEY

DO NOT SET OUT BLUNTLY ENOUGH WHAT THE P.M. WILL BE FACED WITH

IN PEKING: NOR THE DIFFICULTY OF THE TALKS THERE. THE PASSAGES ON

THE CHINESE POSITION GENERALISE RATHER THAN STATE SPECIFICALLY

WHAT WE KNOW.

2. I SUGGEST THAT PARA 33 SHOULD READ : ALL THE EVIDENCE SUGGESTS

THAT THE PRC LEADERS WILL ASSERT THAT

A) THE WHOLE OF HONG KONG IS CHINESE TERRITORY. THIS IS TO THEM

A MATTER OF PRINCIPLE AND CHINESE SOVEREIGNTY MUST BE

**RECOVERED''.

B) SUBJECT TO THIS, THEY WISH TO PRESERVE THE PROSPEPITY AND

STABILITY OF HONG KONG.

C) THEIR PRESENT THINKING IS THAT THIS CAN 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: AND SOME BRITISH CIVIL

SERVANTS COULD REMAIN TO HELP THE LOCAL ADMINISTRATION. BUT

BRITISH JURISDICTION OVER HONG KONG WOULD CEASE**

3. PARA 34 MIGHT READ

''THE PRO LEADERS WILL PROBABLY INDICATE THAT THEY EXPECT THIS TO

HAPPEN IN 1997: AND ARE NOT SEEKING ANY IMMEDIATE RADICAL CHANGE.

BUT THEY HAVE NOT RULED OUT AN EARLIER DATE. MOREOVER THEIR CONCEPT

OF TALKS ON HONG KONG'S FUTURE MAY WELL BE DIRECTED TO THE QUESTION

OF HOW A SMOOTH TRANSITION TO HONG KONG'S NEW STATUS CAN BE

ARRANGED

·

4. PARA 36 SHOULD THEN READ

''BUT THE P.M. WILL THEN NEED TO STRESS THAT THE KEY TO THE

MAINTENANCE OF CONFIDENCE AMONG INTERNATIONAL AND DOMESTIC

INVESTORS, ON WHICH THE PROSPERITY AND STABILITY OF THE TERRITORY

DEPEND LIES IN THE BRITISH CONNECTION. AN ASSERTION THAT THE

''SYSTEMS'' WILL BE PRESERVED WILL NOT BE ENOUGH, AT LEAST UNTIL

THE CHINESE HAVE BUILT UP A LONG TRACK RECORD OF CONSISTENCY. ANY

OFFICIAL ANNOUNCEMENT NOW OF THE CHINESE PLAN WOULD SERIOUSLY AND

IMMEDIATELY UNDERMINE CONFIDENCE. NEITHER HMG NOR THE CHINESE

GOVERNMENT WANT THIS".

SECRET

15.