TNAG-1252-FCO40-1585-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 112

CONFIDENTIAL

CP Burdess Esq

SPD

FCO

BRITISH HIGH COMMISSION

CANBERRA

6 January 1983

AUSTRALIAN INTEREST IN DEVELOPMENTS OVER HONG KONG

1. During my initial call on Dennis Argall who is at present in charge of the North and South Asia Division of the DFA, he spoke at some length in fairly predictable terms about Australia's relations with Japan and Korea and mentioned the possibility of a change in government policy on relations with Vietnam should the Labor Party win the next election (he was, as I think you know, formerly seconded to be foreign affairs adviser to Lionel Bowen). He then went on to stress the range and importance of Australia's relations with China which he said had been thickened up in recent years with the conclusion of a cultural agreement, a trade protocol and an agreement to hold regular meetings between the respective Foreign Ministries at Deputy Secretary level. Trade with China was growing fast and was now worth more than $1 billion annually with a balance in Australia's favour. From there he soon moved on, stressing that he was speaking personally and that he had not discussed what he was going to say with anyone else, to refer to the future of Hong Kong.

2. Argall said that he did not wish to suggest that at this stage the Australians should necessarily be informed of the progress of our discussions with the Chinese about the colony's

However future nor that they should be asked for their views. he personally was a little worried that especially if our negotiations with the Chinese were to go wrong, just possibly, the Australians might suddenly find themselves at some point being asked to support a British position on Hong Kong without having been brought into the picture at an early stage which it could be difficult for them to endorse. He hoped this would not happen. Of all the possible future problems which he could

CONFIDENTIAL

/envisage