TNAG-1232-FCO40-1545-Visit-by-Edward-Heath-MP-to-China-and-Hong-Kong--August-Sept-1983 — Page 17

GR 400

UNCLASSIFIED

FN HONG KONG 14095OZ SEP 83

TO PRIORITY FCO

INFO PRIORITY PEKING

TELEGRAM NUMBER 1353 OF 14 SEPTEMBER

HKK 027/27

RECEIVED IN REGISTRY NO. 51

15 SEP 1983

ᄋᄏ

DESK OFFICER INDEX

REGISTRY

PA

Action Taken

FUTURE OF HONG KONG: VISIT OF MR HEATH.

FOLLOWING HIS TEXT OF AFP REPORT OF MR HEATH'S TALK WITH

THE FOREIGN CORRESPONDENTS CLUB ON SEPT 13.

BEGINS.

HONG KONG, SEPT, 13 (AFF) BORMER BRITISH PRIME MINISTER EDWARD HEATH TODAY SAND HE WAS SATISFIED FOLLOWING HIS VISIT TO PEKING THIS WEEK THAT CHINA AND BRITAN WOULD ARRIVE AT A SATISFACTORY'' SOLUTION TO HONG KONG'S POLITICAL FUTURE AND SAND THAT THE TERRITORY WOULD CONTINUE TO PROSPER DURING THE NEGOTIATIONS. ''BRITAIN AND CHINA CAN KEEP HONG KONG STABLE WHILE THE TWO WRANGLE OVER THE FUTURE OF THE BRITISH COLONY, MOST OF WHICH IS DUE TO REVERT TO CHINA'S SOVEREIGNTY AFTER THE EXPIRY OF A 99-YE AR LEASE IN 1997, MR HEATH TOLD REPORTERS AFTER A SPEECH TONIGHT AT THE FOREIGN CORRESPONDENTS' CLUE.

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HOWEVER, HE REFUSED TO COMMENT ON HOW BRITAIN COULD HELP MAINTAIN THE STABILITY OF THE HONG KONG DOLLAR, WHICH FELL TO A RECORD LOW TODAY OF 7.825 7.835 TO THE U.S. UNIT AND HAS SLUMPED STEADILY SHNCE PRIME MINISTER MARGARET THATCHER VISITED PEKING LAST SEPTEMBER, JUST BEFORE OFFICIAL NEGOTIATIONS OPENED.

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ME HEATH SAND CHINA'S TOP LEADER DENG XIAOPING HAD TOLD HIM DURING THE IR MEETING SUNDAY THAT CHINA INTENDS TO RECOVER SOVEREIGNTY IN 1997, THAT NOTHING WILL HAPPEN UNTIL THEN AND THAT CHINA HOPES HONG KONG'S PROSPERITY WILL CONTINUE AFTER 1997''.

ASKED WHETHER A SOLUTION WOULD BE ACCEPTABLE TO THE PEOPLE OF HONG KONG, WHOSE 5.5 MILLION POPULATION IS 98 PERCENT CHINESE, MR HEATH SAID HE CONSIDERED THE QUESTION HYPOTHETICAL AND REFUSED FURTHER COMMENT.

SOME CIRCLES IN HONG KONG HAVE EXPRESSED CONCERN THAT THE COLONY MITSELF HS NOT REPRESENTED IN THE TALKS, WHICH HAVE FEATURED OFFICIALS FROM CHINA AND BRITAIN.

* DON'T THINK THERE'S ANY THING EVIL OR UNDERHAND'' IN THE REPRESENTATION BY THE BRITISH, MR HEATH SAYD. ***M SURE THAT THE BRITISH GOVERNMENT WILL LISTEN TO EVERYTHING THAT IS SAID IN HONG KONG... THIS IS A TREATY THAT WAS MADE BETWEEN TWO POWERS AND T IS UP TO THOSE TWO POWERS TO SETTLE IT.

MR HEATH ALSO COMMENTED THAT IT WAS NOT UNUSUAL FOR BRITISH DEFENSE MINISTER MICHAEL HESELTINE TO HAVE ATTENDED A RECENT BRITISH FOREIGN AFFAIRS MEETING IN LONDON ON THE SITUATION.

IT IS NORMAL FOR THE DEFENSE MINISTER TO ATTEND FOREIGN AFFAIRS MEETINGS, ** HE SAID.

AS.