TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 162

NOTE FOR THE FILE

CONFIDENTIAL

FROM:

A E Donald

DATE:

19 September 1983

ASIA WORKING GROUP: UK BRIEFING ON HONG KONG

1. In introducing a discussion on China at the meeting of the

Asia Working Group on 13 September, the Greek Presidency asked

whether Mr Donald could brief the meeting on the current state of

the Hong Kong negotiations.

2. Mr Donald emphasised that because the negotiations were

complex and confidential he could not say very much. The

current talks stemmed from the visit by Mrs Thatcher to China in

September 1982 when, although there had been differences of

opinion, it had been agreed to hold negotiations with the common

objective of maintaining Hong Kong's prosperity and stability.

The talks had been slow to get under way, but there had been

rather more intensive negotiations in July and August in Peking,

where the British team was led by the British Ambassador.

negotiations were now in recess, but would resume on

22 September.

The

3. Mr Donald explained that the situation was complicated as

the British lease over 90% of the present territory of Hong Kong

would expire in 1997. The British had legal title to the

remainder, which had been ceded in perpetuity, but it was doubtful whether these parts would be viable on their own. The British objective in the negotiations was to achieve a solution which was acceptable to Parliament, the Chinese Government and the people of Hong Kong. The Chinese, for their part, had an ambivalent position. On the one hand, they were concerned about the sovereignty issue, which arose from 19th century history, and had always maintained publicly that Hong Kong was an integral part of China. On the other hand, they wished to maintain Hong Kong as a free port and as a centre of international finance and stability. The Chinese therefore had to work carefully towards what could turn out to be conflicting objectives and the negotiations were equally complex for them. So far, they had gone out of their way to maintain good relations with Britain and the negotiations were taking place in a friendly atmosphere.

CONFIDENTIAL

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