TNAG-1240-FCO40-1553-Future-of-Hong-Kong-1983 — Page 98

SECRET

22/8/3

461

FROM: R D CLIFT, HKD

DATE: 22 August 1983

LYCE

PS/MR LUCE

Minister:

Enlin

MKK040/1 никочо

-IVED IN REGISTRY

ALJ 1983

RECENT DEVELOPMENTS IN HONG KONG TGPA

Talks on future of Hong Kong

A

1.

(78)

HKK 0494

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PA

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Ath

HCSI

CC: PS

PS/PUS

Mr Giffard

место них

Thank you. Hincts by APS

2122 31)

Peking Telnos 751-2 and 758-9 give an account of the talks

held in Peking on 2/3 August. Sir P Cradock and Sir E Youde

introduced and handed over to the Chinese 4 papers on the legal,

economic, financial and monetary systems in Hong Kong. Yao Guang

made a strong statement reiterating the inseparability of sovereignty and administration. He said that if we did not accept this principle the talks would lead nowhere. China had in any case decided on the policies it was prepared to adopt and would

definitely announce these within one or two years.

2. Despite this hard line, there was no difficulty in obtaining agreement to the following joint press statement on 3 August:

'The two sides held further talks on 2 and 3 August. As

planned, the talks will resume in September. The next round will be held on 22 and 23 September in Peking'.

Reappraisal of strategy

3. Sir P Cradock and Sir E Youde are both on leave. Arrangements have been made for them to call on the Secretary of State at 3.00 pm on 1 September and 3.15 pm on 5 September, and on the Prime Minister at 4.00 pm on 5 September. We should be grateful to know whether Mr Luce will be able to attend these meetings.

SECRET

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