TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 34

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CONFIDENTIAL

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FM OTTAWA 072359Z OCT 83

TO IMMEDIATE FCO

TELEGRAM NUMBER 528 OF 07 OCTOBER

INFO IMMEDIATE TO WASHINGTON, PEKING, HONG KONG

App Chal!!

MY TEL NO 519: VISIT OF CHINESE FOREIGN MINISTER: REMARKS ABOUT

HONG KONG.

}

1... FULL TEXT OF MR WU'S PRESS CONFERENCE, AS TRANSCRIBED BY DEA,

FOLLOWS BY BAG. FOR EXTRACT GIVING QUESTIONS AND ANSWERS ON HONG

'KONG PLEASE SEE MIFT. A FURTHER EXTRACT ON CHINESE/SOVIET

RELATIONS IS BEING TELEGRAPHED SEPARATELY.

2.

HADWEN, DIRECTOR GENERAL EAST ASIA BUREAU IN DEA HAS GIVEN US

FOLLOWING ADDITIONAL BRIEFING.

387

Sea

188

HOD

3. HONG KONG WAS NOT RAISED BY EITHER SIDE IN TALKS BETWEEN WU AND MACEACHEN. IT DID COME UP IN A CONVERSATION BETWEEN WU AND TRUDEAU

DURING A LUNCH HOSTED BY REGAN (MINISTER OF STATE, INTERNATIONAL TRADE) AT WHICH BUSINESSMEN WERE PRESENT. WU GAVE A LONG ANALYSIS

WHICH SEEMS TO HAVE BEEN ALONG THE LINES OF HIS REMARKS TO THE PRESS, EMPHASISING THAT SOVEREIGNTY MUST BE TRANSFERRED, BUT THAT IT IS IMPORTANT TO MAINTAIN BUSINESS CONFIDENCE.

4.

BACKGROUND ON THE FIRST QUESTION IN MIFT. DAVIS, LOUGHEED AND DEVINE, THE PREMIERS OF ONTARIO, ALBERTA AND SASKATCHEWAN, HAVE BEEN BRIEFED BY THE DEA TO TAKE A STATESMANLIKE APPROACH WHEN SEEKING INVESTMENT FROM HONG KONG AND TO AVOID APPEARING TO SCAVENGE. THERE ARE TEN THOUSAND CANADIANS IN HONG KONG AND HUNDREDS OF

MILLIONS OF DOLLARS WORTH OF CANADIAN INVESTMENT. THE CANADIANS RECEIVE 40 TO 50 APPLICATIONS A DAY FROM HONG KONG ENTREPRENEURS WILLING TO INVEST BETWEEN A QUARTER AND HALF A MILLION DOLLARS IN CANADA, WHICH ENTITLES THEM TO JUMP THE IMMIGRATION QUEUE.

5. A COMMENT ON MR WU'S LAST ANSWER TO THE PRESS. MR WU WAS VERY TIRED AT THIS POINT, AND SLIGHTLY CONFUSED. THE TRANSLATOR WAS ALSO CONFUSED. THOUGH VERY GOOD, MR WU WAS NOT EQUIPPED FOR DEALING WITH PERSISTENT LEADING QUESTIONS OF THIS TYPE. DEA ADVISE AGAINST LAYING TOO MUCH EMPHASIS ON ANY PARTICULAR INTERPRETATION OF WHAT

MR WU APPEARS TO HAVE SAID AT THAT POINT.

6.

A.

IN ANSWER TO PRESS QUESTIONS DEA ÅRE TAKING THE FOLLOWING LINE:

DO MR WU'S REMARKS CONTAIN ANYTHING RADICALLY NEW? WE THINK NOT.

YES. TRUDEAU

DID HONG KONG COME UP BETWEEN WU AND MR TRUDEAU? WILL HAVE MADE IT CLEAR THAT CANADA IS INTERESTED IN HONG KONG, BUT IS NOT, OF COURSE, DIRECTLY INVOLVED.

CONFIDENTIAL

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