TNAG-1238-FCO40-1551-Future-of-Hong-Kong-1983 — Page 80

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HONG KONG

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POSITION PAPER NO 4.4

8 JUL 1983

Recent Major Developments

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Emails

1. Mrs Thatcher visited China and Hong Kong in September, 19

1982. After her meeting with Chinese leaders the following statement was

issued:

2.

''Today the leaders of both countries held far-reaching

talks in a friendly atmosphere on the future of Hong Kong.

Both leaders made clear their respective positions on this

subject. They agreed to enter talks through diplomatic

channels following the visit with the common aim of

maintaining the stability and prosperity of Hong Kong.''

Meetings between the Ambassador in Peking and the Vice Foreign

Minister have not so far led to substantive talks. The Chinese

have tried to make it a precondition that the UK acknowledge their sovereignty over the whole of Hong Kong. An exchange of letters

between Mrs Thatcher and the Chinese Premier may have helped to

overcome this impasse.

Present Position

3.

Mrs Thatcher has told the Chinese Premier that recommendations

on sovereignty will be put to Parliament provided arrangements for the territory's future, acceptable to all concerned, were agreed.

The Ambassador in Peking has put proposals to the Foreign Ministry

for the start of substantive talks; a response is awaited.

British Interests

4.

(a) to negotiate with China a solution on the future acceptable to Parliament, the Chinese Government and

the people of Hong Kong.

(b) To maintain confidence in Hong Kong particularly by

consultation with the Executive Council.

(c) To protect UK investment in Hong Kong which is substantial although low in comparison to the US and Japan. UK banks and financial institutions have shared in Hong Kong's financial growth.

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- 8 JUL 1983

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No. 51

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Action, Tuke i

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