TNAG-1232-FCO40-1545-Visit-by-Edward-Heath-MP-to-China-and-Hong-Kong--August-Sept-1983 — Page 48

RR PEKING

GRS 445

Separds

gile made 1718

SECRET

by

Reshaps

Stan

du

we shall

seperate pi

treath's visit.

ichs whe really be

·

visits pie.

this shouldule

a

'MPs

Please

canider/diswis.

Jdui.

12022 1

H

I7

RECEIVED IN RESINDY NO. 31

17 AUG 1983

DESK OFFICER

INDEX

NO

131218

REGISTRY

Actión Jaken

SECRET

FM FCO 161600Z AUGUST 83

TO ROUTINE PEKING

TELEGRAM NUMBER 533 OF 16 AUGUST

INFO HONG KONG (PERSONAL FOR ACTING GOVERNOR).

FOR GALSWORTHY FROM DONALD

Mt.

YOUR TELNO 793: MR HEATH'S VISIT

1. SIR PERCY CRADOCK AND I BRIEFED MR HEATH ON 15 AUGUST ON THE

NEGOTIATIONS OVER THE FUTURE OF HONG KONG.

2. THE AMBASSADOR DESCRIBED THE MAIN ELEMENTS OF THE PRESENT

POSITION, INCLUDING A NARRATIVE OF EVENTS SINCE MRS THATCHER'S

VISIT IN SEPTEMBER 1982. HE COVERED THE INITIAL CONTACTS BEFORE

THE EXCHANGE OF LETTERS BETWEEN MRS THATCHER AND PREMIER ZHAO,

THE DISCUSSION OVER THE AGENDA AND THE FIRST THREE SESSIONS OF

THE SECOND PHASE OF THE TALKS. HE MADE IT QUITE CLEAR THAT WE

HAD REACHED A CRITICAL POINT IN THE NEGOTIATIONS WHERE ANY SIGN

FROM THE BRITISH SIDE THAT OUR POSITION WAS NOT FIRM WOULD BE

SEIZED UPON BY THE CHINESE AND EXPLOITED. WE IMPRESSED ON MR

HEATH THAT THE CHINESE WOULD ASSUME THAT MR HEATH MIGHT BE USED

TO CONVEY A SIGNAL AND IT WAS IMPORTANT THAT HE SHOULD NOT ALLOW

THE CHINESE TO SENSE THAT OUR POSITION WAS LIKELY TO WEAKEN. WE

URGED ON HIM THAT HE SHOULD MAKE THE POINT TO DENG XIAO-PING THAT

A LINK BETWEEN HONG KONG AND BRITAIN WAS ESSENTIAL FOR CONFIDENCE

3. SIR PERCY ALSO SUGGESTED A FURTHER ARGUMENT FOR USE WITH

DENG IF AN OPPORTUNITY PRESENTED ITSELF, NAMELY THAT FAILURE IN

THE NEGOTIATIONS WOULD HAVE A DAMAGING EFFECT ON CHINESE OOLICY

TOWARDS TAIWAN BUT, CONVERSELY, IF THE NEGOTIATIONS WERE SUCCESS- FUL, IT WOULD HAVE A BENEFICIAL EFFECT ON CHINA'S RELATIONS WITH

1

SECRET