TNAG-1242-FCO40-1555-Future-of-Hong-Kong-1983 — Page 77

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GR 350

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SECRET

FM HONG KONG 03021OZ OCT 83

TO IMMEDIATE FCO

HKK04011

RECEIVED IN REGISTRY - 4 JCT 1983

REGISTRY

Action Takan

CHide

INDEX

PA

TELEGRAM NUMBER 1456 OF 3 OCTOBER

INFO IMMEDIATE PEKING

FUTURE OF HONG KONG: CONVERSATION WITH NONA

1. SiR SY CHUNG AND Q W LEE CALLED ON ME ON 1 OCTOBER TO

REPORT ON A DISCUSSION THEY HAD HAD THE PREVIOUS EVENING WITH XU

WHATUN (NCNA DIRECTOR, AND CHINESE COMMUNIST PARTY CENTRAL

COMMITTEE MEMBER) AND L CHUWEN (AN NCNA DEPUTY DIRECTOR). THE MEETING WAS ARRANGED ON NONANTHATHVE AND AT SHORT NOTHCE, NO DOUBT BECAUSE XU WHO ONLY ARRIVED BACK FROM PEKING ON 29 SEPTEMBER AFTER SEVERAL WEEKS ABSENCE, WHISHED TO TALK TO SHR S Y CHUNG AND LEE BEFORE THEY LEFT FOR LONDON WITH THE OTHER

UNOFFICIALS.

2. THE CONVERSATION, WHICH WAS FRIENDLY AND LASTED OVER TWO HOURS RANGED WIDELY OVER THE CHINESE POSITION ON SOVEREIGNTY AND

ADMINISTRATION, THE STATE OF THE HONG KONG ECONOMY AND THE

DOLLAR ETC. SHR S Y AND LEE CLEARLY SPOKE WELL IN REBUTTING STANDARD CHINESE ARGUMENTS, AND IN EXPLANNING THE COMPLEXITY OF HONG KONG, THE IMPORTANCE OF CONFIDENCE AND THE NEED FOR CONTINUING INSULATION.

3. THE MAIN POINTS OF INTEREST WERE:-

(1) XU WAS VERY FURM ON THE INDUMESHBILITY OF SOVEREIGNTY AND ADMINISTRATION, ARGUING THAT ONCE THIS PRINCIPLE WAS CONCEDED THE CHINESE WOULD BE FOUND TO BE VERY FLEXIBLE ON EVERYTHING ELSE. THE UNOFFICIALS TOLD HIM THAT IT WAS NOT ACCEPTABLE FOR THE

CHINESE TO INSIST THAT THEIR DEMANDS SHOULD BE MET BEFORE

NEGOTIATIONS BEGAN.

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