TNAG-1223-FCO40-1533-Relations-between-Hong-Kong-and-Macau-1983 — Page 17

HOFC 341/27

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SECRET

DESK OFFICER INDEX

REGISTRY

Action Taken

TELELETTER

FROM:

FILL WEF:

SCB 4/04

BATSD: 27 OCTOBER 1983

FOLLOWING PERSONAL FOR:

RD CLIFT ESQ[HKD/500 ...

2

COPIED PERSONAL TO:

# C BYATT ESQ CHG LISBOW

A C GALSWORTH ESQ PEKING

R J T MCLAREN, POLITICAL ADVISER, HORG KONG

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, FED

134/10

Idove 3/11

FUTURE OF HONG KONG: HACKU

1. THE GOVERNOR SAW THE GOVERNOR OF MACAU ON 26 OCTOBER AND

*BRIEFED HIM OF DEVELOPIENTS OVER THE FUTURE ON THE LINES

AUTHORISED IN FOO TELMO 1045 (OF 13 OCTOBER).

2. THE GOVERNOR SAID THAT WE HAS NOW HAD FIVE SESSIONS OF TALKS IN PEKING, THE CHINESE POSITION WAS WELL KNOWN, SUNICE THEY HAD MADE IT PUBLIC. IT WAS THAT:

(1) SOVEREIGNTY WOULD REVERT TO CHINA IN 1997.

SOVEREIGNTY AND ADMINISTRATION ARS AND WISHALL.

[5] HONG KONG WOULD THEREAFTER SECOME A SPECAL ADMINISTRATIVE

REGION OF CHINA, RUM BY HONG KONG PEOPLE. EVERYTHING ELSE WOULD REMAIN UNCHANGED.

( CHINA WOULD FORMALLY ANNOUNCE ITS PLAN FOR HONG KONG IN

SEPTEMBER 1984, WHETHER OR NOT AGREEMENT HAD BEEN REACHED

M: THE TALKS.

(IV) IF THERE WERE MAJOR TROUBLES IN HONG KONG CHINA MIGHT I

OBLIGED TO RECONSIDER THE TIMETABLE.

3. THE GOVERNOR SAID THAT HAS HAD MADE IT CLEAR PUBLICLY THAT THEY VERE LOOKING FOR AN AGREEMENT ACCEPTABLE TO BRITAIN AND ICHINA, AND TO THE PEOPLE OF HONG KONG. IT WAS CLEAR THAT THE PEOPLE OF HONG KONG WISHED TO PRESERVE THE STATUS QUO AND IN PARTICULAR THEIR PRESENT FREEDOMS AND LIFESTYLE SHEY BAD 70.COM LAUNCH IN TH CHINESE PLAN AND WERE NOT SATISFIED WITH OPTRESE ASSURANCES THAT THE PHOVISION FOR SPECIAL ADMINISTRATIVE REGIONS IN THE CHINESE CONSTITUTION SHOULD BE SUFFICIENT GUARANTEE. THIS WAS ONE OF THE REALITIES OF THE SITUATION. OTHER REALITIES WERE THE FACT THAT THE

VEN TERRITORIES LEASE WAS DUE TO END IN 1997, AND THE CHINESE

IPOLITICAL POSITION.

4. THE GOVERNOR THE DESCRIBED THE DEVELOPMENT OF THE CHINESS PROPAGANDA CAMPAIGN AND ITS EFFECTS ON LOCAL CONFIDENCE, PART- ICULARLY IN THE HONG KONG DOLLAR THE TH CAMPAIGN HAD PEAKED AT THE TIME OF THE 22/23 SEPTEMBER ROUND OF TALKS WHEN THE DOLLAR FILL TO AN ALL TIME LOW AGAINST THE US DOLLAR. IT HAD SEEN AGAINST THAT BACKGROUND THAT THE GOVERNOR AND THE UNOFFICIAL

MEMBERS OF THE EXECUTIVE COUNCIL HAD GONE TO LONDON FOR 2:3- CUSSIONS WITH THE PRANE MINISTER AND OTHER KINISTERS.

5. CONTINUING, THE GOVERNOR SAID THAT WE HAD BEEN SEEKING TO ENGAGE THE CHIHESE IR DISCUSSION OF PRACTICAL APRANGE- HESTS FOR HONG KONG AFTER 1997. THIS HAD NOT BEEN ANY EASY PROCESS. BUT IT NOW LOOKED AS THOUGH WE MIGHT HAVE FOUND A WAY ROUND THE DIFFICULTIES OF FRINCIPLE ERECTED BY THE CHINESE, AND THAT WE WOULD BE ABLE TO GET DOWN TO DETAILED DISCUSSION OF PRACTICAL MATTERS. LOOKING AHEAD, THE GOVERNOR SAID THAT THE TALKS WERE BOUND TO TAKE THE. HE HOPED THAT THE NEXT FEW MONTHS WOULD BE QUIETER BUT MUCH WOULD DEPEND ON WHETHER THE CHINESE WOULD COOPERATE IN PERIODIC JOINT STATEMENTS INDICATING THAT THE TALKS TERE GOING REASONABLY WELL. THE GOVERNOR THEN BRIEFED REAR ADMIRAL ALTE DA E COSTA ON THE KICENT MEASURES TO STABILISE THE EXCHANGE RATE OF THE HONG KONG DOLLAR AND ON THE GOVERNMENT TAKEOVER OF THE HANG LUNG BAMK (MICH HAS AGACAU DIMENSION).

་

6. IN FURTHER DISCUSSION REAR MUNITAL ALIGIDA E COSTA SAID THAT HE QUOTE HAD PEASON TO BELIEVE VIQUOTE THAT THE EVENTUAL SOLUTION FOR MACAU HOULD ES ALONG THE LINES OF WHATEVER WAS AGREED FOR HONG KONG. APE ASKED WHAT POSSIL TY THERE WOULD BE FOR CONTINUIZE COOPERATION WITH BRITAIN 4 CHIRA RECOVERED 20TH SOVEREIGNTY AND ADMINISTRATION OVER HONG KONG. THE GOVERNUR SAND THAT THE CHINESE PLAN DIE NOT INVOLVE THE INSTALLATION OF A CHINESE ADMINISTRATION IN HONG KONG. ALL THEY HAD DONE WAS TU PRODUCE A VERY GENERALISED SET OF PRINCIPLES. WHAT WE WISHED TA ESTABLISH WAS WHAT THOSE PRINCIPLES NIGHT MEAL IN PRACTICS AND #HAT FUTURE RELATIONSHIP BETWEEN HONG KONG ANG THE UR,TED KINGDON THE CHINESE WOULD 20 PREPARED TO CONTEMPLATE. HE COULD OWLY ESTABLISH THAT THROUGH THE KIND OF PRACTICAL DISCUSSONS GR

WHICH WE NOW HOPED TO LUSARK.

7. THE REKALER OF THE DISCUSSION WAS MOSTLY ABOUT THE CURAINT 5.TUATION IN NACAU, AID THE DIFFERC .000 BETWEEN PRACTICES THERE AND IN HONG KONS. THOUGH OF 504C LOCAL STEWEST IT IS UT WORTH

ECORDING HERE.

S:CKER: RJT CLAREN