TNAG-1243-FCO40-1557-Future-of-Hong-Kong-1983 — Page 128

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SECRET

THE SECRETARY OF STATE'S LUNCH WITH LORD SHAWCROSS, TUESDAY 4

OCTOBER 1983: FUTURE OF HONG KONG

POINTS TO MAKE

B 1. Know you saw Richard Luce on 7 September. Since then, further

session of talks held in Peking on 22/23 September, next round 19/20

October. Content confidential.

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2.

Chinese line remains tough. But encouraging that both sides

share desire to secure stable and prosperous future for Hong Kong. I had further discussion with Chinese Foreign Minister in New York.

3. Trying to educate Chinese about complexity of Hong Kong and

vital issue of confidence there. Confidence linked to existing form

of administration and systems. Do not think Chinese fully understand Hong Kong's complexities, and basis for confidence, eg in

HK dollar. Your letter in 'Times' of 23 September helpful in making

these points.

4.

Chinese propaganda has floated idea of Hong Kong as Special

Administrative Region (SAR) under Chinese constitution. Propaganda

campaign stepped up, especially before talks on 22/23 September. Propaganda has give erroneous impression that we have ceded Chinese

premise on sovereignty. Not so. We remain flexible but have conceded nothing. Chinese propaganda has also been damaging confidence in Hong Kong.

5.

Most Hong Kong people sceptical of what they have heard of China's Hong Kong plan. Insufficient merely to say that Hong Kong's lifestyle will be unchanged. Hong Kong people, and investors, need proof of effective guarantees against Chinese interference.

6. You have floated proposal that 'Hong Kong's Executive Council

be 'internationalised' in context of Hong Kong as autonomous region

of China. Interesting concept but does not accord with what we know

of China's views on 'Hong Kong people to rule Hong Kong'.

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