TNAG-1230-FCO40-1543-Visit-by-Richard-Luce--Minister-of-State-for-Foreign-and-Com-1983 — Page 96

SECRET

be postponed by a day in order to avoid overlap with Mr Luce. But some speculation will remain and will need to be dealt with firmly.

(b) Declining confidence in Hong Kong. Attitudes in Hong

Kong, partly responding to a renewed Chinese propaganda campaign, are increasingly depressed. The trend of the Hong Kong dollar and stock exchange is still downwards. If we can keep the talks going this may be offset by some extent.

(c)

Mr

Luce may wish to discuss this with EXCO. The Governor will best be able to advise on the line to take at the press conference but ideas are suggested in the notes.

Fears of a British 'sell out'. These are always endemic in Hong Kong. They may be partly heightened at the time of the visit, particularly as a hangover from Mr Heath's dispute with UMELCO at his meeting on 12 September which will almost certainly have appeared in the press mean- while. Robust reassurance on HMG's commitment will be required.

Вит

15 September 1983

THIS IS A COPY

THE ORIGINAL HAS BEEN

но

a tai la là do më be 16

CLOSED FOR

FOL

LLO YEARS UNDER FOL EXEMPTION No.2

SECRET

R D Clift

Hong Kong Department