TNAG-1248-FCO40-1562-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 179

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FM BIS NEW YORK 211955Z JUNE 83

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TEL NO 16 OF 21 JUNE 1983

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INDEX

NEWSWEEK: REPORT ON HONG KONG

REGISTHY

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Action Taken

TEXT OF HONG KONG ARTICE IN CURRENT EDITION OF NEWSWEEK (WHICH ONLY WENT ON SALE YESTERDAY AFTERNOON) IS AS FOLLOWS: BEGINS

A HONG KONG DEADLINE

CHINA HAS ALREADY SERVED NOTICE THAT IT INTENDS TO CLAIM SOVEREIGNTY OVER HONG AFTER BRITAIN 99 YEAR LEASE EXPIRES IN 1997, BUT THE MOMENT OF TRUTH FOR BRITAINS PROSPEROUS CROWN MOLONY COULD COME EVEN SOONER. NEWSWEEK HAS LEARNED THAT WHEN BRITISH PRIME MINISTER MARGARET THATCHER VISITED PEKING LAST SEPTEMBER, CHINESE LEADER DENG XIAOPING THREATENED TO IMPOSE A DEADLINE OF HIS OWN IF NEGOTIATIONS WITH LONDON OVER HONG KONGS FUTURE STATUS DID NOT PROCEED TO HIS SATISFACTION. "IF BRITAIN AND CHINA DO NOT REACH AGREEMENT BY THE END OF 1984, DENG WARNED THATCHER DURING AN ACRIMONIOUS PRIVATE MEETING, **CHINA WILL ANNOUNCE ITS OWN SOLUTION.**

THE CONVERSATION WITH THATCHER WAS DESCRIBED BY COMMUNIST PARTY GENERAL SECRETARY HU YAOBANG DURING A RARE TWO-HOUR INTERVIEW IN PEKING WITH PARRIS CHANG, A CHINA SCHOLAR AT PENN STATE UNIVER- SITY, DENGS TOUGH TALK MAY HAVE BEEN PARTLY BLUFF. BUT HONG KONGS 5.5 MILLION RESIDENTS MOST OF WHOM DREAD THE PROSPECT OF COMMUNIST RULE ARE JITTERY ABOUT THE OUTCOME OF THE NEGOTIATIONS BETWEEN BRITAIN AND CHINA.

IN LONDON, THATCHERS AIDES WOULD NEITHER CONFIRM NOR DENY THAT DENG HAD THREATENED TO IMPOSE A 1984 DEADLINE. "THE CONDITIONS GOVERNING TALKS BETWEEN THE TWO SIDES SAY THAT THEIR CONTENT MUST REMAIN CONFIDENTIAL,'' SAID A SPOKESMAN AT 10 DOWNING STREET. HU DID NOT SAY WHETHER PEKING HAS ALREADY DECIDED IN ITS UNI- LATERAL SOLUTION FOR HONG KONG. HOWEVER, THE CHINESE GOVERNMENT HAS PREVIOUSLY PROPOSED THAT BRITAINS CROWN COLONY BECOME A **SPECIAL ADMINISTRATIVE REGION** AFTER 1997. UNDER THAT PLAN, HONG KONG WOULD BE PART OF CHINA BUT WOULD HAVE SOME AUTONOMY FROM PEKING.

**YACHT PEOPLE': CHINESE SOVEREIGNTY OVER HONG KONG IS PROBABLY INEVITABLE, BUT LONDON STILL HOPES THAT PEKING WILL ALLOW HONG KONG CHINESE AND PERHAPS BRITISH CIVIL SERVANTS TO CONTINUE RUNNING THE COLONY FOR AN INTERIM PERIOD AFTER 1997. IF PEKING REJECTS THAT IDEA, HONG KONGS BUSINESS AND FINANCIAL LEADERS COULD

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