TNAG-1243-FCO40-1557-Future-of-Hong-Kong-1983 — Page 137

CONFIDENTIAL

BRIEFING FOR FCO MEETING WITH BP: 8 DECEMBER 1983

HONG KONG

POINTS TO MAKE (Defensive)

A.

FUTURE OF HONG KONG

Talks agreed September 1982. Meetings held in Peking. Common

aim of maintaining Hong Kong's stability and prosperity.

1.

Second, more detailed phase of talks began in July. Six rounds

since. Latest round 14/15 November. Described by both sides as

useful and constructive. Next round 7/8 December.

2.

3. Content of talks confidential.

4.

Objective of HMG is to seek a settlement acceptable to Britain, China and people of Hong Kong. Joint Sino-British aim gives ground for confidence that such an arrangement can be worked out. Views of Hong Kong people being taken fully into account.

5. Chinese propaganda has floated idea of Hong Kong as Special

Administrative Region (SAR) under Chinese constitution with

considerable autonomy and functioning essentially as it does now.

Most people in Hong Kong sceptical of this idea, which suggests

basis for confidence not grasped by the Chinese. Hong Kong people and investors need effective guarantees.

6.

Important nothing said or done which might damage confidence in

Hong Kong or complicate task of negotiators.

Chinese Propoganda

7. It is what is said at the conference table that matters. Wrong

to regard outcome of talks as prejudged by anything said outside

them.

CONFIDENTIAL