TNAG-1254-FCO40-1587-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 204

GR 200

CONFIDENTIAL

CONFIDENTIAL

MKK040/5

FM WASHINGTON 150341Z JUL 83

TO PRIORITY FCO

TELEGRAM NUMBER 1991 OF 15 JULY

INFO PEKING HONG KONG (PERSONAL)

YOUR TALKS WITH SHULTZ: HONG KONG

1. YOU EXPLAINED TO SHULTZ THAT OUR TALKS WITH THE CHINESE HAD NOW ENTERED THE SECOND PHASE. THEY WERE BOUND TO BE DIFFICULT. THE CHINESE PRINCIPAL PREOCCUPATION WAS SOVEREIGNTY, BUT THEY NOW HAD SOME UNDERSTANDING OF WHAT IT WAS THAT CREATED CONFIDENCE IN HONG KONG AND ENABLED THE PLACE TO TICK. SHULTZ ENDORSED THAT VIEW. HE CITED A CORPORATE LAW CASE IN THE UNITED STATES INVOLVING CHINA IN WHICH THE CHINESE HAD NOT BEGUN TO COMPREHEND HOW THINGS

SHOULD BE MANAGED.

2. YOU EMPHASISED TO SHULTZ THE NEED FOR CONFIDENTIALITY IN OUR DISCUSSIONS WITH THE CHINESE, SAYING THAT WE LOOKED TO THE US FOR COMPLETE DISCRETION.

WRIGHT

THIS TELEGRAM WAS NOT ADVANCED

FUTURE OF HONG KONG

LIMITED

ED/HKD

ED/FED HDINAD ED/PLANNING STAFF.

HD/PUSD

PS

PS/LADY YOUNG

PS/R LUCE

PS/PUS

SIR J BULLARD

MR GIFFARD

MR DONALD

MR WRIGHT

COPIES TO:

SIR I SINCLAIR LEGAL ADVISER

MR BURROWS

MR MARTIN

MR FLOWER

MR COLES

LEGAL ADVISERS

ASSESSMENTS STAFF CABINET OFFICE

PUSD

NO 10 DOWNING ST

SIR A PARSONS

MR WALKER,

11

ה

RESEARCH DEPT (90995)

MR ROBERTS NEWS D

CONFIDENTIAL

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