TNAG-1241-FCO40-1554-Future-of-Hong-Kong-1983 — Page 46

CONFIDENTIAL

CALL BY MISS CLARE HOLLINGWORTH ON MR LUCE : 2.30 PM ON THURSDAY 8

SEPTEMBER 1983

FUTURE OF HONG KONG

POINTS TO MAKE

[Defensive]

1.

Encouraging that second (ie more detailed) phase of Sino-British

talks under way (will reconvene 22 September) with common aim of

maintaining Hong Kong's stability and prosperity. Confident that

given this common aim, satisfactory solution to Hong Kong's future

can be reached.

2. Content of talks confidential.

3.

Our aim is to seek a solution acceptable to Britain, China and to people of Hong Kong. Their views being taken fully into account.

4.

Aware Hong Kong people sceptical of China's plan for Hong Kong as Special Administrative Region (SAR) of China. Evidence suggests a) Chinese have not thought through detailed issues involved;

b) they do not fully understand complexities of Hong Kong and basis

for confidence.

5.

Hong Kong people need proof of effective guarantees against

Chinese interference. Central issue is to devise package in which

Hong Kong people and investors will have confidence.

Sovereignty

6. Chinese and British positions well-known. We fully realise importance of sovereignty issue to China. We are not inflexible. Are willing to consider any solution to Hong Kong's future acceptable to Britain, China and Hong Kong.

CONFIDENTIAL