TNAG-1253-FCO40-1586-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 113

GR 350

UNCLASSIFIED

FM HONG KONG 250945Z JUL 33

TO IMMEDIATE FCO

TELEGRAM NUMBER 954 OF 5 JULY

INFO IMMEDIATE PEKING CANBERRA

MIPT: VISIT OF AUSTRALIAN FOREIGN MINISTER

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Jin P. Haddon Care

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1. FOLLOWING ARE MAIN POINTS OF MR HAYDEN'S PRESS CONFERENCE:

(A) AUSTRALIA WAS PART OF THE SOUTH EAST ASIAN REGION AND TOOK A CLOSE AND ACTIVE INTEREST IN ITS AFFAIRS.

(3) INSTABILITY IN THE REGION HAD AS MUCH INFLUENCE ON AUSTRALIA'S SECURITY AS TRADITIONAL GREAT POWER ALLIANCES AND FRIENDSHIPS.

(C) HONG KONG WAS A VITAL SOCIAL AND ECONOMIC CENTRE IN THE REGION AND ONE OF THE MAJOR FINANCIAL CENTRES OF THE WORLD. THE TRANSITION

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QUOTE ONE PRESUMES IT WOULD TAKE PLACE IN SOME FORM FROM BRITAIN TO MAINLAND CHINA UNQUOTE - WOULD HAVE CONSEQUENC FOR AUSTRALIA, PARTICULARLY IF IT WERE BADLY HANDLED.

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ANTONY ACLAND

RECEIVED IN REGISTRY NO. 51 -7 JUL 1983

(D) HE HAD GAINED THE IMPRESSION THAT PEOPLE IN HONG KONG BELIEVED THE TRANSITION PROCESS WOULD BE MANAGED SUCCESSFULLY DESK OFFICE.

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(E) HE HAD HAD QUOTE SEVERAL EXTENDED DISCUSSIONS UNQUOTE WITH WỤ XUEQIAN, THE CHINESE FOREIGN MINISTER IN AUSTRALIA. WU HAD SOUGHT TO ASSURE HIM THAT THE CHINESE HAD A CLEAR DETERMINATION TO ENSURE THAT THE TRANSITION WOULD BE A SMOOTH PROCESS AND THAT POST 1997 HONG KONG WOULD FUNCTION AS IT DID TODAY. WU HAD SAID THAT CHINA RECOGNISED THAT FOR HONG KONG TO BE SUCCESSFUL IT WOULD HAVE TO OPERATE AS A FREE MARKET CAPITALIST SYSTEM, AND CHINA WOULD SEEK TO WORK OUT ARRANGEMENTS WHICH WOULD ALLOW AN AUTONOMOUS ADMINISTRATION TO FUNCTION IN HONG KONG. MR HAYDEN EXPECTED TO DISCUSS HONG KONG AGAIN WITH WU DURING A FORTHCOMING VISIT TO CHINA.

(F) HE WAS SATISFIED THAT QUOTE THE BRITISH AUTHORITIES ARE COMMITTED TO SEEKING TO ENSURE THAT THE TRANSITION PROCESS IS SUCCESSFUL AND THAT THE POST 1997 PERIOD WILL PROTECT THE INTERESTS OF THE PEOPLE OF HONG KONG UNQUOTE. THERE COULD BE NO DOUBT ABOUT THE PRIME MINISTER'S COMMITMENT QUOTE TO ENSURE THAT THIS TRANSITION PROCESS WAS SMOOTH AND SUCCESSFUL UNQUOTE.

(G) (IN ANSWER TO A QUESTION) THE PROBLEM WAS NOT SO MUCH OVER SOVEREIGNTY AS OVER AUTHORITY AND ADMINISTRATION.

HADDON-CAVE

LIMITED

HDD / HKD HD / SPD HDI FED HD/ PUSD

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PS/AR LUCE

DS/PUS

MR WRIGHT HR LIFGARD HR DONALD

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