TNAG-1249-FCO40-1563-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 36

TT HONG KONG

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D IN AUSRIHY 17 NOV 1983

DESE OFFICIA INDUK

De da Lak

3663

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12814

TELELETTER

FROM R D CLIFT, HKD, FCO

FILE REFERENCE HKK 040/19

DATED 14 NOVEMBER 1983

FOLLOWING FOR L M DAVIES ESQ, SECRETARY (GENERAL DUTIES) HONG KONG COPIES TO A C GALSWORTHY, PEKING

303) MIP TELELETTER: FUTURE OF HONG KONG: UMELCO

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FOLLOWING IS TEXT OF DAILY STAR REPORT:

'A NEW DIPLOMATIC BOMBSHELL HAS MADE SIR GEOFFREY HOWE'S LONG-

TERM FUTURE AS FOREIGN SECRETARY MORE UNCERTAIN THAN EVER.

FOR IT HAS BEEN REVEALED THAT BRITAIN IS WILLING TO 'SELL-OUT'

ITS RIGHTS OVER HONG KONG. AT PRESENT BRITAIN OWNS ABOUT HALF

THE MONEY-MAKING COLONY. THE TITLE DEEDS' FOR THE REST ARE

HELD BY CHINA AND WE RENT IT FROM PEKING. BUT ALL THE LEASES RUN

OUT IN 15 YEARS AND NEGOTIATIONS ARE NOW ON TO PIECE TOGETHER

SOME SORT OF DEAL. SIR GEOFFREY SHOCKED A PRIVATE MEETING OF

SENIOR TORY BACKBENCHERS EARLIER THIS WEEK WHEN HE TOLD THEM:

'WHAT WE ARE LOOKING FOR IS A LIBERAL WESTERN-STYLE ECONOMY IN

A COMMUNIST SETTING'. HIS AUDIENCE MEMBERS OF THE INFLUENTIAL

FOREIGN AFFAIRS COMMITTEE WERE OUTRAGED. THEY WERE EXPECTING

A MESSAGE FROM THE FOREIGN OFFICE THAT BRITAIN WAS NOT GOING TO

SELL OUT OVER HONG KONG. AND AFTER THE GRENADA CRISIS IT MEANS

ANOTHER HOT SESSION FOR SIR GEOFFREY DURING TODAY'S COMMONS

DEBATE ON FOREIGN AFFAIRS WITH GOVERNMENT SUPPORTERS QUITE AS

CRITICAL AS LABOUR MPS. 'IT WAS REALLY VERY INEPT. WE EXPECT

A LOT MORE FROM OUR FOREIGN SECRETARY' A SENIOR TORY, WHO

ATTENDED THE COMMITTEE MEETING, SAID LAST NIGHT. SIR GEOFFREY'S

WORDS WILL NOT PUT ANY CONFIDENCE INTO THE WORLD'S MONEY MARKET

WHERE HONG KONG SHARES AND DEALINGS HAVE BECOME A MAJOR INFLUENCE

OVER THE LAST 20 YEARS. BACK IN WESTMINSTER THE RUMOURS WERE

AGAIN RIFE THAT SIR GEOFFREY COULD END UP AS ONE OF THE SHORTEST

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