TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 114

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MH Jay, PS/PUS 25 July 1983

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PUS'S LUNCH WITH MR JOHN SWIRE

I.

Only Mr Swire, Lord Keswick, Mr Brodie and Mr McCallum were present. Much of the discussion was about the negotiations on the future of Hong Kong, on which the PUS revealed nothing which was not already known. Mr Swire said he accepted the need for the negotiations to take place in confidence. He thought that the Unofficials were on board at the moment, and had gone back satisfied from their recent visit to London. But he thought it would be harder to keep middle-ranking Hong Kongers steady. Sir Edward Youde would find it hard to keep returning from Peking with nothing to say.

2.

Lord Keswick said that the market would be the best indicator of the success or failure of the talks. The PUS said he accepted this to an extent, although there was always the risk that the market would be influenced by rumours which would not necessarily be true. Lord Keswick said that the question of the nature of the link between Hong Kong and Britain would have to be addressed at some stage. The PUS said that the views of the business houses on this would be helpful but he made no promises about consultation.

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