CONFIDENTIAL
12
9.
MR. SHULTZ TO HOST MEETING IN HK:
American Secretary of State, Mr. George Schultz, will host a meeting of US diplomats in Asia and the Pacific region in HK from 8-9 February following a visit to China, Japan and South Korea. A Government spokesman said it was likely that Mr. Shultz would meet the Governor, Sir Edward Youde, during his stay here. The talks would be confidential and no agenda had yet been fixed. Quoting an unnamed political analyst, the Financial Daily said HK's prospects would be an important topic in the agenda of the American diplomats' meeting. It said Mr. Schultz's visit reflected the importance the US attached to HK which was a key strategy and intelligence centre in Asia for western countries. The report said it was expected that Mr. Shultz would be briefed by the Governor on Britain's latest position towards the HK issue. It also speculated that Mr. Shultz would tell the Governor of his understanding of Beijing's attitude and might make some suggestions in resolving the 1997 issue. The political analyst surmised that the US wanted to play the role of mediator in the Sino-British talks because China's policy towards HK could have a strong impact on the political situation in Southeast Asia.
A US congressman, Mr. Don Bailey, currently in HK on a private visit, said the US had to play a role in the future of HK; many people in the US were concerned about HK's future and there was a growing dialogue concerning HK in the US. The Chinese community in the US was naturally concerned about the problem of the future and it was quite normal for a local issue to gain political prominence. To the American public HK was not regarded as a British enclave, but an exciting and energetic trading centre of great importance. The US government should provide support for the negotiations on HK's future. Local people should try to assert their influence on the drawing up of American policies that had a bearing on them. The Kung Sheung Daily News headlined his remark that the US would support Britain's stand.
10.
PRESS LINES:
The left-wing press made extensive editorial comment during the week. Apart from endorsing Meeting Point's proposals and disagreeing with remarks made by Urbco chairman, Mr. Hilton Cheong-Leen, and the Vice-chairman of the Anglo-HK Parliamentary Group, Mr. Ian Wrigglesworth, principal left-wing papers also commented on the theme that HK was an inseparable part of Chinese territory. Wen Wei Po joined the New Evening Post in criticising Britain's policy towards the Falklands. Independent papers continued to speak in favour of maintenance of the status quo. In an editorial entitled "HK is one entity linked to mainland China", the New Evening Post said the whole of HK was an inseparable part of Chinese territory. The Chinese were not bound by the three unequal treaties which divided HK into three parts. The accords were completely invalid. China would recover the whole of HK by not later than 1997, though some people suggested that Britain should return only the New Territories. If this was the case, HK and Kowloon would not have a future without the New Territories. Britain's assertion of its sovereignty and
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