TNAG-1239-FCO40-1552-Future-of-Hong-Kong-1983 — Page 161

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The official was identified in the Financial Times as Vice

Foreign Minister Qian Qichen.

Reaction in Hong Kong

5. The initial reaction in Hong Kong to the statement issued in Peking was mixed. There was disappointment that no more detailed announcement had been made. On the other hand, it was generally accepted that, despite the differences and difficulties, it was good that both sides had made their positions clear and agreed to get down to further discussion.

6. The Prime Minister's remarks about the treaties in her

press conference were initially well-received in business circles and were seen by many as a declaration of her commitment to Hong

Kong. Left-wing reaction, however, reflected that in China. On 29 September 1982 the New China News Agency in Hong Kong put out a

report on student protests in Hong Kong against the Prime Minister's remarks at her press conference. In particular, Mrs Thatcher's statement that she regarded the 19th century treaties as still valid was mentioned, as was her suggestion that the treaties should be

"varied". Students were said to have issued statements saying that

Hong Kong was "part of China's sacred territory" and that it was "the Chinese people's duty to recover the sovereignty of Hong Kong.' Another student statement was quoted: "We cannot accept the British Prime Minister's proposal to vary the treaties because accepting the proposal means recognition of the treaties, thus harming once again our national dignity". The NCNA report also said that the statement took exception to Mrs Thatcher's argument that Hong Kong's prosperity had been achieved under British rule.

7. Subsequently, there was considerable alarm in Hong Kong at the

Chinese campaign of leaks and unofficial statements about the Prime

Minister's talks.

a contributory factor to the fall in the

Hong Kong stock market and in the value of the Hong Kong dollar

throughout most of October and November. The retrospective view then

became widely held that it had been a mistake for HMG to raise the

question of Hong Kong with the Chinese at all, and that the Prime