TNAG-1243-FCO40-1557-Future-of-Hong-Kong-1983 — Page 154

S'tong #trous guil

have to be done

and 1997

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2 -

and prosperity. In the course of the conversation, Dr. HUANG made the following additional points:-

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a)

b)

Before Mrs. Thatcher's visit to Peking, China had not been keen to discuss the future of Hong Kong. He had been told a few years ago that Peking's priority was reunification with Taiwan, with Hong Kong to be dealt with subsequently. However, this priority had now been reversed.

It was most unwise for Britain to "play the economic card", and to overemphasise the economic advantages of Hong Kong to China. The Chinese found this offensive, because they considered that the foreign exchange which they earned from Hong Kong was hard earned money, in exchange for goods and services which contributed to the prosperity of Hong Kong.

Yours ever.

Richard.

(R P Margolis)

Deputy Political Adviser

RPM:pr

CC:

D G Blunt Esq H M Embassy Peking

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