TNAG-1254-FCO40-1587-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 10

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(x)

(xi)

British administration. Evidence suggests Chinese have not thought through most detailed issues involved. They appear to assert that by saying Hong Kong will continue to be financial/commercial centre or that currency will continue to be internationally tradeable, this will just

happen.

We have sought to educate Chinese about basis for

confidence and importance of continuity of current

systems.

We have concentrated on Hong Kong's position as

a financial/commercial centre, on the Hong Kong dollar

and on the importance of a stable legal system.

Under no illusions about toughness of Chinese line but

aim to hammer home importance of confidence factor.

Their propaganda is directed to pressurising us. We do not accept any deadline for talks (though obviously confidence in Hong Kong will not hold up indefinitely

against uncertainty).

(xii) Have reiterated to Chinese that British Government

obtains no revenue from Hong Kong other than that of normal trading partner, contrary to what Chinese seem to

think.

(xiii) Important nothing said or done to damage confidence in

Hong Kong. Grateful for your understanding.

(b)

With Premiers of Ontario/Alberta

(i) Talks through diplomatic channels between Britain and China agreed last September. Meetings held in Peking with common aim of maintaining Hong Kong's stability and prosperity.

(ii)

Second, more detailed, phase of talks began in July. Reconvened 22-23 September after 7-week recess. Chinese delegation led by Vice Foreign Minister Yao Guang, British delegation by HMA Peking. Governor of Hong Kong participating as appropriate on British side.

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