TNAG-1245-FCO40-1559-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 11

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:BRITAIN SAID TO ACKNOWLEDGE CHINA'S SOVEREIGNTY OVER HONG KONG (EMBARGOED FOR AUTOMATIC RELEASE AT 1600 GMT WEDNESDAY JUNE 29):

HONG KONG, JUNE 29, REUTER - BRITAIN HAS INDIRECTLY ACKNOWLEDGED CHINA'S SOVEREIGNTY OVER HONG KONG AND THIS HAS ENABLED LONDON AND PEKING TO BEGIN SUBSTANTIVE NEGOTIATIONS ON THE COLONY'S FUTURE, ACCORDING TO A LEADING MAGAZINE HERE.

THE FAR EASTERN ECONOMIC REVIEW SAID TODAY IN A PRESS RELEASE THAT ITS LATEST EDITION WOULD STATE THAT THE ATMOSPHERE SURROUNDING THE TALKS IMPROVED AFTER PRIME MINISTER MARGARET THATCHER SENT A PERSONAL LETTER TO CHINESE STRONGMAN DENG XIAOPING +WHICH INDIRECTLY ACKNOWLEDGED CHINA'S SOVEREIGNTY OVER THE COLONY.+

THE REPORT CAME ONLY HOURS AFTER FOREIGN SECRETARY SIR GEOFFREY HONE TOLD PARLIAMENT IN LONDON THERE WERE GROUNDS FOR CONFIDENCE THAT THE OUTCOME OF THE TALKS WOULD BE SATISFACTORY TO BRITAIN, CHINA AND THE PEOPLE OF HONG KONG.

MOST OF IT IS HELD BY BRITAIN UNDER A LEASE EXPIRING IN 1997. THE REST, CONSISTING OF HONG KONG ISLAND AND THE KOWLOON PENINSULA, WAS GRANTED TO BRITAIN IN PERPETUITY UNDER 19TH CENTURY TREATIES.

THATCHER SHOOK THE PEOPLE OF HONG KONG LAST YEAR WHEN SHE SAID BRITAIN STILL REGARDED THESE TREATIES AS VALID WHILE CHINA HAS STATED IT INTENDS TO REGAIN SOVEREIGNTY OVER THE WHOLE COLONY BY 1997.