TNAG-1232-FCO40-1545-Visit-by-Edward-Heath-MP-to-China-and-Hong-Kong--August-Sept-1983 — Page 6

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Mr Morris, HKD

Morris,

PRC/TAIWAN

CONFIDENTIAL

HITK 027 127 RESIVED IN RADIAL

- 7 OCT 1983

INDLX

MKK040/5

Reference

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the recaud of theath/Deng Seat 83 / There is a repa

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1. I attach a copy of an SWB report on remarks made by Deng Xiaoping on 26 June to Professor Winston Yang. Two points are worth noting:

2.

a.

Deng emphasised that the future Taiwan Special Administrative Region could not have complete autonomy; Taiwan's internal system could be different from that on the mainland but 'only the PRC is entitled to rep- resent China in the international arena'.

b. Deng stated that the Taiwan SAR 'may exercise independent jurisdiction and the right of final judgement need not reside in Peking'.

•

Mcad.

These remarks will not have been made, or now publicly released without consideration of their relevance also to Hong Kong. In the Hong Kong context we have not yet seen Peking worrying about whether its proposals might eventually encourage the Hong Kong Chinese to seek not closer integration with the mainland but further separation from it, ie a

1 one China, one Hong Kong' development. If only because of the Taiwan parallel I think concern about this is likely to grow, if it seems that the Chinese proposals or something like them are going to be put into practise. Chinese will wish to assert with confidence that after 50 years as an SAR Hong Kong will become a regular part of the socialist PRC and not a second Singapore.

}

3. Kyodo/ Vice Premier Yao Yilin as saying that after unification Taiwan will be able to maintain a certain degree of diplomatic and military authority'. Deng himself reiterated that Taiwan could keep its own armed forces 'so long as they do not constitute a threat to the mainland but Yao's reference to diplomatic authority seems to be at odds with Deng's authoritative remarks. The Chinese may offer further clarification in due course.

1 August 1983

cc: Mr Thomson, FED

Mr Walker Research Dept

логого

N J Cox

Far Eastern Department W82

233 5539

CONFIDENTIAL