TNAG-1243-FCO40-1557-Future-of-Hong-Kong-1983 — Page 57

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SECRET

LORD SHAWCROSS' CALL ON THE SECRETARY OF STATE, MONDAY 30 JANUARY

1983: FUTURE OF HONG KONG

POINTS TO MAKE

1. We discussed 4 October. Three rounds of talks since. ALL

'useful and constructive'. Latet 7/8 December. Next 25/26 January.

December round: joint review of course of talks and progress to

date. Good atmosphere.

argued

agred

to

2. We have red for detailed discussion of practical measures

ensure stability/prosperity. Sincerely receptive to any proposals

which would do this and be acceptable to Parliament, China and Hong

Kong.

3. Now exploring Chinese ideas for Hong Kong as Special

Administrative Region of China. This without prejudice to our own

position or to any final agreement. Latter for Parliament to decide.

We wish to see if Chinese ideas form basis of lasting settlement for

Hong Kong.

4.

Conta

Clearly some common ground in some aspects eg Hong Kong's

financial system/external economic relations. But there are problem

areas and others needing more exploration. We wish to continue

exploratory process. This necessary to reach fully considered view

of Chinese plan. Concentrating first on areas where there is most

common ground.

5. We, Like Chinese, wish for satisfactory settlement as soon is

reasonably possible. We are getting on as quickly as we can. But

important thing is right solution. We believe stability/prosperity

can best be ensured by:

(a) maximum continuity in Hong Kong's structures;

(b) minimum of interference.

6. In continuing close touch with Hong Kong opinion. Vital to

devise package inspiring confidence in Hong Kong people/investors.

Otherwise collapse of Hong Kong as it is known today. This would

SECRET