TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 147

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The Prime Minister said that the British and Chinese

Governments had a common objective: they shared the aim of maintaining the prosperity and stability of Hong Kong in the interests of the people who lived there. She believed that if

the two Governments co-operated together they could achieve that objective. She noted that Premier Zhao Ziyang also said that the time was now ripe to settle the question of Hong Kong's future.

The Prime Minister said that she was conscious that the

present talks were taking place with the eyes of the world upon them and that anything which was now said or done would have an

immediate impact on confidence both in Hong Kong itself and internationally; and confidence was essential to the continued economic well-being of Hong Kong. As she had said to Premier

Zhao Ziyang she

understood how important the principle of sovereignty was to China; but sovereignty was also a difficult

issue for her. She had read the records of the talks between

Premier Zhao Ziyang and Mr. Humphrey Atkins and Mr. Deng Xiaoping and Mr. Edward Heath, had included a similar point about the Chinese position on sovereignty. On this issue she had to convince the British Parliament and Mr. Deng had to convince the Chinese people. So sovereignty was a difficult point for both sides.

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The Prime Minister said that she wanted to repeat what she

had said to Premier Zhao Ziyang, namely that if the two Governments could agree definite arrangements about the future administration and control of Hong Kong, and/the Prime Minister were satisfied that they would work and that they would command confidence, and if she could justify them to the British Parliament, and they were acceptable to the people of Hong Kong, there would be a new situation in which the Prime Minister could consider the question of sovereignty. But without agreement on concrete arrangements on administration and control, she would not be able to make any recommendations to the British Government on the question of sovereignty.

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