CONFIDENTIAL
38
HKK040/1
RECEIVED BY 3.0
22 JUL 1983
PS/Mr Luce
DISK OF
INDEX
BY
an Taken
CM2518
FROM: R D CLIFT, HKD
DATE: 20 JULY 1983
cc: Mr Donald
FED
LORD RHODES' CALL ON CHINESE AMBASSADOR: HONG KONG
1.
Lord Rhodes has asked if Mr Luce could give him advice before he calls on the Chinese Ambassador this afternoon. I suggest that Mr Luce covers the following points:
катего
(a) The second phase of the talks has got underway. This is encouraging. The main problem is the Chinese publicly expressed view that an autonomous Hong Kong under the Chinese constitution can operate without serious effect on stability, prosperity and confidence.
The Ambassador may well press Lord Rhodes to acknowledge that this would be a reasonable proposition. Helpful to ask Lord Rhodes to avoid giving the impression that he agrees that Chinese assurances would be sufficient. Some kind of insulator is necessary. Present system is effective.
(b)
(c)
(d)
Helpful to point out to Ambassador strength of concern in Hong Kong. Worries by investors about future of currency. Not enough simply to decree that there will be an independent Hong Kong dollar. Investors would expect more of a guarantee than that.
If Ambassador claims that Hong Kong people have told Peking that they are happy with the Chinese proposal, useful if Lord Rhodes could say he has a different impression. Could point to the visit of the Young Professionals. Representative group who understand the need for effective guarantees.
Blip
See (382)
RD Clift
20 July 1983
Hong Kong Department
CONFIDENTIAL
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