TNAG-1252-FCO40-1585-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 94

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and concrete statements from the Chinese. The agreed statement of last September was a notable achievement. I clarified what the Prime Minister had actually said on the subject of the Treaties. Endorsing what Ralph Clough had said about the confidence factor, I said it could do no harm for Americans who had interests in the area to stress to the Chinese their economic stake in the region and emphasize the confidence factor. Dr Wei's strictures on the Hong Kong Government could not be farther from the truth; the Hong Kong Government were investing, and would continue to invest heavily in the future of the territory, and would seek further expansion of economic relations with the mainland. Finally I listed what I thought were some reasons for optimism; the joint statement, the Chinese economic stake in Hong Kong, the link in the minds of Peking between Hong Kong and Taiwan, and the relative stability of the Chinese Government.

7. I hope that my remarks were sufficiently bland and may have succeeded in offsetting a slight tendency to pessimism and a feeling that Sino-UK relations are strained. In the absence of any good news from the talks such a tendency is unsurprising, but it is one reason why, if people are discussing the subject, it seems useful to have a British presence, even if we are not in a position to shed much new light.

yours

ever

Stephen Gomersall

SJ Gomersall

CONFIDENTIAL