TNAG-1251-FCO40-1584-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 83

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TELEGRAM NUMBER 187 OF 25 JANUARY

FKK 040/5

TOP 25 JAN1993PY

INFO PEKING (PERSONAL FOR AMBASSADOR) HONG KONG (PERSONAL FOR GOVER

NOR)

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YOUR TELNOS 97 AND 98: FUTURE OF HONG KONG.

The Box

1. THE MINISTER TOOK ACTION WITH WOLFOWITZ AND SHOESMITH IN THE STATE DEPARTMENT ON 24 JANUARY. THOMAS SPOKE TO YOUR TELNO 98, AND HANDED OVER A LETTER FROM ME TO SHULTZ (COPIES BY BAG) INCORPORATING THE BRIEFING POINTS BUT MAKING IT CLEAR THAT WE LEFT IT ENTIRELY TO SHULTZ'S JUDGEMENT TO DECIDE ON THE SPOT WHAT HE COULD HELPFULLY SAY. WE ALSO PROMISED TO GET IN TOUCH AGAIN IF THERE WAS SUBSTANTIVE DEVELOPMENTS SEFORE HIS MEETING WITH THE CHINESE.

2. WOLFOWITZ THANKED US FOR THE LETTER WHICH HE WOULD PASS TO SHULTZ IMMEDIATELY. HE SAID THAT THEY HAD CONSIDERED TWO FACTORS IN THEIR ADVICE TO SHULTZ: FIRSTLY THEY WISHED TO BE SURE THAT ANYTHING SAID WOULD BE HELPFUL AND NOT HARMFUL. THEY NOTED OUR VIEW THAT WE WOULD CONSIDER IT HELPFUL. SECONDLY THEY WISHED TO AVOID ANY SUSPICION BY THE CHINESE THAT THE AMERICANS WERE USING HONG KONG TO CONVEY INDIRECTLY A MESSAGE ABOUT TAIWAN, ON WHICH US INTERVENT- ION WAS STRONGLY RESENTED.

3. SHULTZ WILL BE MEETING WITH THE PRESS IN HONG KONG. HE HOPES TO MAKE US RELATIONS WITH ASIA AS A WHOLE (ESPECIALLY THE AREAS NOT COVERED IN THE CURRENT TRIP) THE CENTREPIECE OF HIS STATEMENT, BUT RECOGNISES THAT HE IS BOUND TO BE ASKED ABOUT HONG KONG. IT IS PROPOSED THAT HE SHOULD SAY THAT HONG KONG IS AN IMPORTANT FINANCIAL CENTRE, IN WHICH THE UNITED STATES HAS SUBSTANTIAL BUSINESS INTERES-

TS. HE WILL NOT USE THE WORDS QUOTE STATUS QUO UNQUOTE. BUT EXPRESS THE HOPE THAT THE FUTURE CAN BE RESOLVED IN A WAY WHICH DOES NOT

PREJUDICE HONG KONG'S POSITION, WHILE NOTING THAT IT IS A MATTER STRICTLY BETWEEN PEKING AND LONDON, WE RECOMMENDED HIS WEAVING IN THE FÓRMULA IN PARA 4(A) OF YOUR TELNO 98.,

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4. HONG KONG TELNO 129 TO FCO UNFORTUNATELY ARRIVED AFTER WE HAD TAKEN ACTION. I AM SURE SHULTZ UNDERSTANDS THIS POINT VERY WELL

AND WILL IN ANY CASE WANT TO PUT IT IN HIS OWN WORDS.

AF

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WRIGHT

FUTURE OF HONG KONG

LIMITED

HD! HKG D

YIR JBULLARD PS/MR HURD

HD/FED

ED/PLANNING STAFF

HD/PUSD

PS

COPIES TO

SIR I SINCLAIR

MR ROBERTS

MR COLES

MR MARTIN

LEGAL ADVISER

NEWS D

PS/LORD BELSTEAD

PS/PUS

MR GIFFARD

MR DONALD

NO 10 DOWNING STREET

ASSESSMENTS STAFF

CABINET OFFICE

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