TNAG-1254-FCO40-1587-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 157

c) If pressed on Chinese leaks (eg Hu Yaobang's

remarks to Japanese journalists on 15 August)

you should speak as in para 10 of guidance TUR.

But you could add that the Japanese should not

place too much reliance on Chinese public remarks

particularly about HMG's position. They are

familiar with Chinese negotiating tactics.

d) The Chinese are taking a tough line on sovereignty

and do not appear fully to understand why continuity

is necessary.

But the atmosphere remains friendly.

We hope that as the talks go on their understanding will increase

of the complex practical basis of Hong Kong's

stability and prosperity.

e) Generally UK/China relations remain in good order.

British companies have won major licences to explore

for and develop offshore oil in the current round of

bidding. Talks on the Guangdong nuclear project

continue. The Chinese Petroleum Minister (Tang Ke)

is visiting Britain next month. Mr Walker and

Lord Cockfield are likely to make separate visits to

China later in the autumn.

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