TNAG-1253-FCO40-1586-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 30

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SECRET

GRE 700

SECRET

FROM PEKING 10070OZ AUG 63

TO PRIORITY FCO

TELEGRAM NUMBER 777 OF 10TH AUG 93

MKK09015

RECEIVED IN REGISTRY

¿AUG 1983

REGISTRY

PA

DESK OFFICER

INDEX

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Acron Taken

7

1CH118

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INFO PRIORITY HONG KONG AND CANBERRA (PERSONAL FOR HIGH COMMISSIONER)

FUTURE OF HONG KONG: MR HAYDEN'S TALKS IN PEKING

1. THE AUSTRALIAN EMBASSY HERE HAVE GIVEN US A FULL BRIEFING OF MA

HAYDEN'S TALKS WITH WU XUEQIAN ON HONG KONG. THEY HAVE ASKED

THAT THE FACT THAT THEY HAVE GIVEN US THIS BRIEFING SHOULD NOT BE

REVEALED TO OTHER AUSTRALIAN MISSIONS OR TO THE DFA IN CANBERRA.

PLEASE PROTECT.

2. HAYDEN HAD SAID IN HIS OPENING STATEMENT TO WU THAT HE WOULD

LIKE BRIEFING ON HONG KONG AND TAIWAN. WU HAD RETURNED TO THE

SUBJECT AT A LATER STAGE IN THE TALKS. HE SAID THAT THE CONTENT

OF THE DISCUSSIONS BETWEEN THE UK AND CHINA WAS A PRIVATE MATTER.

HOWEVER HE COULD GIVE SOME BRIEFING ON THE CHINESE POSITION

THE ISQUE HAD BEEN RAISED BY MRS THATCHER WITH DENG AND ZHAO, WHO

MADE CLEAR THAT AFTER 1997 SOVEREIGNTY OVER THE WHOLE OF HONG KONG

WOULD REVERT TO CHINA, CHINA HAD NEVER RECOGNISED THE TREATIES.

THIS POINT WAS NON-NEGOTIABLE. BUT CHINA WOULD NEGOTIATE ON HOW

TO MAINTAIN THE STABILITY AND PROSPERITY OF HONG KONG. DENG HAD

MADE A FURTHER POINT OF PRINCIPLE: CHINA WAS PREPARED TO TURN

HONG KONG INTO A SPECIAL ADMINISTRATIVE REGION WHERE POLICIES

APPLICABLE TO THE CONDITIONS OF HONG KONG WOULD BE PURSUED, FIRMS

OF OTHER COUNTRIES INCLUDING THE UK COULD CONTINUE TO OPERATE:

THEIR PROPERTIES AND INTERESTS WOULD BE PROTECTED. THE STATUTES

AND LAWS WOULD REMAIN UNCHANGED. HOWEVER THERE WOULD BE A FEW MINOR

CHANGES, SUCH AS THE OMISSION OF REFERENCES TO HER MAJESTY'S

GOVERNMENT (MR HAYDEN OBSERVED AT THIS POINT THAT AUSTRALIA HAD

NOT YET GOT THIS FAR).

3. WU THEN REFERRED TO DENG'S RECENT MEETINGS WITH HONG KONG

DELEGATIONS TO THE MPC AND CCPCC. HE SAID THAT DENG HAD TOLD

THEGE DELEGATIONS THAT IN RESPECT OF THE FUTURE ADMINISTRATION

OF HONG KONG THE LOCAL CHINESE WOULD ELECT THEIR OWN REPRESENTATIVES

TO CONDUCT ADMINISTRATION. ALTERNATIVELY THE CHINESE GOVERNMENT

MIGHT APPOINT LOCAL PEOPLE TO MANAGE HONG KONG. BUT PEKING WOULD

NOT SEND IN OUTSIDE PEOPLE TO ADMINISTER THE TERRITORY. SRITISH ADMINISTRATORS WHO WERE HONG KONG RESIDENTS COULD

CONTINUE TO WORK IN THE ADMINISTRATION AS EMPLOYEES. CHINA

WOULD ALLOW HONG KONG TO HAVE ECONOMIC RELATIONS WITH OTHER

COUNTRIES AND HER POSITION AS A FREE PORT AND INTERNATIONAL

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LFINANCE

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