TNAG-1232-FCO40-1545-Visit-by-Edward-Heath-MP-to-China-and-Hong-Kong--August-Sept-1983 — Page 32

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RECEIVED IN REGISTRY NO. A

3 1 AUG 1983

INDEX

DESK OFACER

Mr Clift

From:

A E Donald

3

Date:

avevaker

This frist Now Enter. Pl. apeut

FUTURE OF HONG KONG:

MR HEATH'S

cc:

·

15 August 1983

PS/Mr Luce

PS

PS/PUS

Mr Giffard

Head/FED

Head/Planning Staff

Mr Roberts, News Dept

"}

VISIT TO CHINA

1. Sir Percy Cradock and I called on Mr Heath at his home today to brief him on the negotiations over the future of Hong Kong, before his visit to China. Mr S May and another adviser were present and took notes. Both, however, gave an assurance that the utmost confidentiality would be maintained.

2. Mr Heath has an appointment with Deng Xiaoping at the beginning of his visit to China. He arrives in Peking on 30 August. He will be calling at Hong Kong after his China visit, and will be entertained at lunch by UMELCO.

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3. Sir Percy described the main elements of the present position, including a narrative of events since Mrs Thatcher's visit in September 1982. He explained that we had reached a critical point in the negotiation where any sign from the British side that our position was not firm would be seized upon by the Chinese. We urged on Mr Heath that he should make the point to Deng that a link between Hong Kong and Britain was essential for confidence. Sir Percy also suggested a further argument for use with Deng if an opportunity presented itself, namely that if the negotiations ended in failure it would have a damaging effect on Chinese policy towards Taiwan and, conversely, if the negotiations were successful it would have a beneficial effect on China's

relations with Taiwan.

4. Mr Heath asked several questions about our objective in the talks and what precise administrative arrangements would be best in British eyes for Hong Kong after 1997. We said that this would only emerge in the course of the negotiations.

5. Mr Heath was inclined to be sceptical about the British position. I explained about the strength of feeling in Hong Kong, and particularly in EXCO, that Britain should be seen to be doing

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