TNAG-1251-FCO40-1584-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 101

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RECORD OF DISCUSSION AT WORKING LUNCH GIVEN EXEVEE FOREIGNNO. 51 AND COMMONWEALTH SECRETARY FOR THE JAPANESE FOREIGN MIN 1985ER AT 1 PM ON TUESDAY, 4 JANUARY 1983 AT ADMIRALTY HOUSE

Present:

Mr Francis Pym Sir J Bullard

Mr CSR Giffard

Mr D H A Hannay

Mr A G Hurrell (ODA)

Mr H D A C Miers

Mr M Elliott

Mr J E Holmes

Hong Kong

DESK OFFICEK INDEX

Mr Shintaro Abe

PA

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Mr Tsuyoshi Hirahara Mr Nobuo Matsunaga

Mr Yoshiya Kato

Mr Masaki Seo

Mr Koichi Tsutsumi

REGISTRY

Acton Takan

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Mr Yukio Satoh (Japanese Embassy) Mr Kazuo Asakai

8. Mr Pym said that we were discussing the future of Hong

Kong with the Chinese. The problem was to maintain confidence

among the Hong Kong business community, which had had exaggerated

expectations of the Prime Minister's visit to China. The Chinese

appeared not to understand the importance of British admini-

stration. The UK was trying to accelerate the process of

negotiation. Mr Pym expressed the hope that over the next

year the Japanese government and business community would

maintain business as usual in Hong Kong as a contribution to

confidence. Mr Abe said that he was aware of the significance

and contribution of Hong Kong to trade and economic stability

in Asia and more widely. He took note of what Mr Pym had said

and hoped for a satisfactory solution.

9. Mr Matsunaga commented that sovereignty was clearly a

question of principle for the Chinese and they were unlikely

to give way on this point, particularly because of the connection with the Taiwan question. How would the British government deal

with this? Mr Pym agreed that the Chinese did see sovereignty in

this way, but the fact was that Kowloon and Hong Kong Island had

been ceded to Britain in international law. Britain could not

just accept the Chinese view. It would be necessary to come to

some arrangement which took account of the Chinese view and of

the wish of the 5 million inhabitants of Hong Kong to live in security and prosperity. Mr Abe gave it as his personal view

that the Chinese people were very pragmatic and would not want

to exert excessive pressure for change in the existing situation.

of Hong Kong, because it had brought them advantage. Mr Pym said

that this was encouraging, and Sir J Bullard added that the Chinese

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