TNAG-1247-FCO40-1561-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 49

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FM HONG KONG 140439Z MAY 83

TO IMMEDIATE F C O

TELEGRAM NUMBER 690 OF 14 MAY

INFO IMMEDIATE PEKING

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MCKO 10/2

RECEIVED & REGISTRY NO. 51 13 MAY 1983

DESK OF T

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MY TELNO 681: FUTURE OF HONG KONG : PRESS REPORTS

THE LATEST EDITION OF

Action Taken

n

Mitils!

A LONG ARTICLE HEADLINED DRAMATIC TURN. THE STORY

WIDE ANGLE'' PUBLISHED TODAY CARRIES

SINO/BRITISH TALKS ABOUT TO TAKE A INCLUDES THE POINTS IN MY TUR.

2. TODAY'S ECONOMIC JOURNAL ALSO CARRIES THE STORY, ATTRIBUTING IT TO A PRO-CHINA PUBLICATION IN HONG KONG'' THROUGH WHICH ''THE CHINESE GOVERNMENT HAS SPREAD THE NEWS THAT NEGOTIATIONS OVER HONG KONG'S FUTURE WILL SOON BEGIN''. THE ARTICLE SAYS THAT SINO/BRITISH TALKS WILL BEGIN LATER THIS MONTH IN PEKING AND WILL BE HELD IN ACCORDANCE WITH CHINA'S ''FORMULA'' WHICH MEANS THAT TALKS WILL BE DIVIDED INTO TWO STAGES AND WILL BE BASED ON THE PREMISE THAT BRITAIN RECOGNISES CHINA'S SOVEREIGNTY OVER HONG KONG. IN THE FIRST STAGE THE TALKS WILL FOCUS ON HOW TO MAINTAIN HONG KONG'S PROSPERITY AND STABILITY BETWEEN NOW AND 1997 AND ON OTHER QUESTIONS RELATING TO THE REVERSION OF SOVEREIGNTY AND RULE OVER HONG KONG. IN THE SECOND STAGE THERE WILL BE DISCUSSION OF SINO/BRITISH CO-OPERATION AFTER 1997. HOWEVER, BRITAIN WOULD BASICALLY HAVE NO SAY ON HOW HONG KONG SHOULD BE RULED AFTER 1997. SINO/BRITISH CO-OPERATION WOULD CONCERN ONLY SUCH MATTERS AS ARRANGING FOR THE HONG KONG BANK AND CHARTERED BANK TO CONTINUE TO ISSUE HONG KONG CURRENCY.

3. THE ARTICLE ALSO QUOTED FULLY THE POINTS MADE BY THE GOVERNMENT SPOKESMAN YESTERDAY EVENING (MY TELNO 683), DESCRIBED AS A ''DENIAL''. IT THEN REFERRED TO REPORTS THAT THE FOREIGN OFFICE'' WROTE TO THE CHINESE PRIME MINISTER ''A FEW MONTHS AGO'' TO REITERATE THAT THE TALKS MUST TAKE PLACE WITHOUT PRECONDITIONS AND COULD NOT PROCEED ON THE BASIS OF CHINA'S STAND THAT BRITAIN MUST FIRST RECOGNISE CHINA'S SOVEREIGNTY OVER HONG KONG. BUT THE CO LETTER HAD RAISED NO OBJECTION TO CHINA PURSUING IT'S SOVEREIGNTY CLAIM IN THE TALKS, AND HAD SAID THAT THE ISSUE OF SOVEREIGNTY WOULD BE INCLUDED IN THE AGENDA. CHINA HAD SUBSEQUENTLY SAID THAT THIS COULD BE ARRANGED AND THE DEADLOCK HAD THUS BEEN BROKEN. CONCLUDING, THE ARTICLE SAID THAT PREPARATORY MEETINGS MIGHT BE HELD BEFORE THE NATIONAL PEOPLES' CONGRESS AND THE U.K. GENERAL ELECTION BUT THE ACTUAL TALKS WOULD HAVE TO WAIT UNTIL AFTER THE ELECTION. IT SAID THAT BRITAIN'S POSITION ON THE FUTURE ADMINISTRATION OF HONG KONG HAD CONSISTENTLY BEEN THAT ANY AGREEMENT REACHED SHOULD BE AGREED AND ACCEPTED BY HONG

KONG PEOPLE.

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