TNAG-1249-FCO40-1563-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 24

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CONFIDENTIAL

TELELETTER

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RECEIVED IN ACLISTA:

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INDEX

Taken:

R.P. MARGOLIS, DEPUTY POLITICAL ADVISER HONG KONG

FILE REFERENCE: SCR 5/3571/81

See HKK040|1 (164)

DATED

FOLLOWING FOR:

COPIED TO:

19 NOVEMBER 1983

W. MORRIS ESQ., (HKD, FCO D.G. BLUNT ESQ., PEKING

N.J. COX ESQ.,

FED, FROCH

THE FUTURE OF HONG KONG: PRESS COVERAGE: WIDE ANGLE ARTICLE

THE LATEST EDITION OF WIDE ANGLE CARRIED AN ARTICLE PROPORTING TO REVEAL DETAILS BOTH OF THE PROGRESS OF THE TALKS SO FAR AND OF CHINA'S DETAILED THINKING ON CERTAIN ASPECTS OF THE ORGANISATION OF THE FUTURE HONG KONG SPECIAL ADMINISTRATIVE REGION. AS USUAL THE ARTICLE WAS WIDELY LEAKED TO OTHER NEWS- PAPERS IN ADVANCE OF PUBLICATION (SEE FOR EXAMPLE AN ITEM BY RICHARD HUGHES IN THE TIMES ON 16 NOVEMBER).

2. THE SOURCE OF THE INFORMATION IN THE ARTICLE IS

་

See 312

DESCRIBED AS A WELL KNOWN PERSON NEWLY APPOINTED TO THE CPPCC. ACCORDING TO THE SOURCE, BRITAIN HAD AT FIRST INSISTED ON RETAINING SOVEREIGNTY, IN THE HOPE OF RETURNING THE NEW TERRITORIES TO CHINA IN 1997, BUT REMAINING IN CONTROL OF HONG KONG ISLAND AND SOUTH KOWLOON. LATER ON, BRITAIN PROPOSED TO RETURN SOVEREIGNTY TO CHINA 'IN ACCORDANCE WITH THE WISHES OF HONG KONG RESIDENTS' WHILST RETAINING ADMINISTRATIVE CONTROL. THIS WAS ALSO REJECTED BY CHINA. THE DEADLOCK IN THE TALKS LED TO THE CRISIS IN THE STOCK AND FOREIGN EXCHANGE MARKETS OF LATE SEPTEMBER. THE GOVERNOR AND EXCO MEMBERS HAD TRAVELLED TO LONDON TO TELL THE PRIME MINISTER THAT BRITAIN SHOULD NOT INSIST ON RETAINING ADMINISTRATIVE CONTROL, BUT THAT THE BRITISH GOVERNMENT SHOULD SEEK TO RETAIN A SUBSTANTIAL BRITISH PRESENCE AND THE RULE OF LAW. AS A RESULT THE ATMOSPHERE OF THE TALKS IMPROVED GREATLY DURING THE 19-20 OCTOBER ROUND. ACCORDING TO THE SOURCE CHINA WAS INSISTING THAT ANY BRITISH OFFICIALS RETAINED IN HONG KONG SHOULD OWE ALLEGIANCE TO THE HONG KONG SAR AND NOT THE QUEEN.

AND NOT TO PETNE ? 47