TNAG-1242-FCO40-1555-Future-of-Hong-Kong-1983 — Page 64

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From: PS/Lady Young

Date: 23 September 1983

CC: Private Secretary

PS/Mr Luce PS/PUS

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Hd of Planning Staff Mr Elliott, FED PUSD

CALL BY LORD RHODES ON LADY YOUNG, 4.30 PM ON THURSDAY 22 SEPTEMBER 1983: FUTURE OF HONG KONG

1. Lord Rhodes and his delegation duly called on Lady Young on 22 September to discuss their visit to China in October. Lord Rhodes said that they would probably be calling on Li Xian Nian while in Peking. Li was likely to be tough over Hong Kong and the delegation would welcome an indication of the line they should take in reply.

2. Lady Young emphasised the delicacy of the negotations over Hong Kong. Our aim was to maintain the stability and prosperity of the Territory and to reach a solution acceptable to the UK, the people of Hong Kong and the Chinese. It was vitally important to maintain confidence in Hong Kong and it was for this reason that we were keeping the negotiations strictly confidential.

She very much hoped, therefore, that the delegation would go no further than this in dicussing Hong Kong with the Chinese. The crucial thing was to get across to the Chinese the basis on which confidence in Hong Kong rested; the Hong Kong people and investors needed proof of effective guarantees against Chinese influence.

3. In the ensuing discussion Lady Young undertook to let Lord Rhodes have a note of some points to make about Hong Kong. (It should be sufficient to send him another copy of the points to make given to him by Mr Luce). She also handed over the note on Chinese South West Energy Resources attached to Mrs Priest's submission of 22 September and said that we would appreciate the delegation's assistance in this context. Lord Rhodes asked whether would could provide additional copies of this note and the points to make for the rest of the delegation and I should be grateful if you could set this in hand. I should also be grateful if you could arrange for copies of whatever is sent to Lord Rhodes to be sent separately to Lady Llewlyn Davies.

4.

Although Lord Rhodes made it clear that he did not want to upset the Hong Kong applecart, Lady Young feels that he still hankers after a role for himself and that the meeting should have been helpful in keeping him in line. She considers that Lady Llelwyn Davies, to whom she had spoken privately beforehand, should be most. helpful in keeping him in check.

MKK 040/1

RECEIVED IN REGISTRY

- 7 OCT 1983

23 September 1983

DESK OFFICER

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