TNAG-1251-FCO40-1584-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 16

SECRET

SECRETARY OF STATE'S MEETING WITH MR SHULTZ: 3 MARCH 1983

FUTURE OF HONG KONG

POINTS TO MAKE (Defensive)

1. Glad you were able to visit Hong Kong last month.

Understand the Governor briefed you on developments.

2. Sir P Cradock saw Chinese Vice Foreign Minister Yao Guang

on 9 February: no progress made. Chinese still not prepared to

hold substantive talks without acceptance of their premise on

sovereignty.

3. Chinese propaganda campaign well orchestrated and widespread

but our efforts remain concentrated on finding formula to get

substantive talks started. Wrong to negotiate through the media.

4. In Hong Kong confidence still high. How did you find things?

Grateful for US efforts to educate Chinese about how Hong Kong

works.

SECRET