TNAG-1234-FCO40-1547-Future-of-Hong-Kong-1983 — Page 75

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LORD BELSTEAD'S MEETING WITH THE GOVERNOR OF HONG KONG : 11.30

ON 25 JANUARY 1983 : ESSENTIAL FACTS

MOOD IN HONG KONG

1.

Hang Seng Index has been climbing recently and closed at 908.56 on 20 January. It was down 36.57 points on 21 January to close at 871.99. The Hong Kong dollar closed that day at 6.54 to the US dollar and has been fairly static recently.

CHINESE PROPAGANDA CAMPAIGN

2.

There have been many reports from Hong Kong on remarks by Liao Chengzhi, a leading policy maker on Hong Kong, to a visiting group from the New Territories. The group returned to Hong Kong on 18 January and Hong Kong telegram numbers 55 and 102 (attached) provide some of the flavour.

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TALKS WITH CHINESE

3.

Mr Jenkin called on Acting Premier Wan Li on 16 January and raised the question of the talks and Chinese propaganda. Peking telegrams numbers 37 and 38 (attached) refer. HMA Peking saw the then Vice Foreign Minister, Zhang Wenjin, twice during October and again on 4 December 1982. Since then both Zhang and the Foreign Minister have been replaced and the new Foreign Minister has been on an African tour for 3 weeks accompanying Prime Minister Zhao. HMA Peking has just informed us that he has arranged his first call on Yao Guang, Zhang's

successor on 26 January.

4.

Hong Kong and General Department

24 January 1983

SECRET

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THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED FOR

40 YEARS UNDER FO! EXEMPTION No. 2.ZI

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