TNAG-1176-FCO40-1478-Air-services-between-the-UK--China-and-Hong-Kong-1982 — Page 103

SECRET & PERSONAL

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Foreign and Commonwealth Office

Mr. Williams

London SWIA 2AH

Mi Gaga

copied Pan

Aw do Reg: (anfatio to

VI

C W Roberts Esq CAIR

Department of Trade

1 Victoria Street LONDON SW1H OFT

Dear Christipher.

Kellot FED 23/6 22 June 1982

a.

HONG KONG AND CHINA: ATR SERVICES

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221

HKIZ

184/1

RECEIVED IN REUNDVEY KG. 5)

23 JUN 232

Pas 23/1

John Gray and I discussed your letter to him of 16 June and agreed that it would be best if I replied.

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2.2

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In talking about the Hong Kong/China Air Services problem, we have already touched on the implications of the wider political issue, including the future of the Territory. Naturally, I agree that this affects a range of other questions, including civil aviation. The problem is that we cannot, either on the central political question or on any of the related issues, deal with the Chinese quite as we would normally expect to handle a foreign government on other issues.

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3. This springs of course from the oddity of Hong Kong's position and from the fact that, at any rate for the past 15 years, it has existed less on the basis of our 'rights than because the Chinese see it as benefitting them. This has not meant that we have been working from weakness on the contrary China's need for Hong Kong has put us in a strong position - but it does involve some careful footwork to ensure that neither side is obliged to face up to the delicate question of sovereignty. When the question of 1997 is tackled this point will of course come up; we know that the Chinese put much store on ''safeguarding' their sovereignty. Our concern in return will be to ensure that confidence in Hong Kong is preserved and that the interests and welfare of the inhabitants are maintained.

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How this can be achieved is still unclear and I should emphasise Ministers have not yet taken a view on it. But obviously it will be very important to convince the Chinese that they will continue to gain economic advantage from any future arrangement.

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SECRET & PERSONAL

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