WORLD AT ONE, 19 SEPTEMBER 1983
MR HEATH
1. China's position governed by the treaties. 1997 seen as key
date when sovereignty over Hong Kong would pass to China. How this
would be put into effect would be agreed by Britain and China. China
was giving much thought to how to develop Hong Kong and maintain
prosperity between now and then. The main difficulty in the negotiations
was sovereignty. One problem was the need to get EXCO and LEGCO to
face realities. Meanwhile the uncertainty was damaging.
2. China does not see itself as rocking the boat. It wants to discuss
how to ensure prosperity but is not prepared to abandon its position on sovereignty. Hong Kong has an important contribution to make to
China. There was nervousness there because the Hong Kong people had no
idea what was happening in the talks. If HMG could tell the people of
Hong Kong, this would do much to dispel the uncertainty.
MR DAVIES, FEER
Bankers
3. Asked about Whitehall not being worried about Hong Kong, Mr Davies
said the dollar exchange rate had hit an all-time low over the weekend
and the Stock Exchange was also falling steadily. He spoke of 'panic'
Hong Kong's fate was being decided by others.
were meeting in Hong Kong probably to put up the interest rate again.
It was clear Britain was not going to budge in the forthcoming talks.
There was a large gap to bridge. Last Friday's Financial Times article
was generally accurate although the head line was unhelpful.
''[Peking rules out UK administration'']
4. Mr Heath's visit to Hong Kong had gone very badly. He had lectured EXCO whom he had underestimated. They thought he had too easily accepted
the Chinese arguments.
MR MACGREGOR, HKGCC
5. The Chinese regarded sovereignty and administration as inseparable.
Their reassuring noises were actually having the opposite effect but
Britain's silence was causing greater worry. 'Panic' was too strong a word but people were very worried. The problems affecting the economic indicators were of a purely political nature. He hoped Britain could
restate its commitment to Hong Kong.
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