TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 102

SECRET

HKK 040/5

MR LUCE'S VISIT TO WASHINGTON AND NEW YORK : 24-27 OCTOBER 1983

FUTURE OF HONG KONG

POINTS TO MAKE

A.

WITH DEPUTY SECRETARY DAM/ MR WOLFOWITZ

1. Useful to update. Sir A Acland saw Mr Dam 29 September. Governor of Hong Kong briefed Mr Weinberger in Hong Kong 30 September.

2. Grateful for Mr Wolfowitz' helpful remarks (at Asia Society luncheon 14 October) on delicacy of business confidence in Hong Kong. If you felt the US could help in other ways, interested to know your ideas.

3.

Second phase of talks.

Latest round 19/20 October.

'useful and constructive'.

Meetings held July, August, September.

Joint communiqué described meetings as Talks reconvene Peking 14/15 November.

They

4. Atmosphere good but Chinese line on substance tough. demand sovereignty and insist that sovereignty and administration are indivisible.

5.

Some details emerged of China's Hong Kong plan. Main points on 25 July:

i)

ii)

Hong Kong to become Special Administrative Region (SAR) of China;

Government to comprise local people of Hong Kong;

iii) Socio-economic systems and way of life to remain unchanged; iv) Private ownership of property and foreign investment to be

protected;

v)

vi)

vii)

Fundamental freedoms to be protected;

Hong Kong SAR to enjoy high degree of autonomy in legal

matters;

Hong Kong's laws to be basically unchanged;

viii) Hong Kong to continue as free port and international financial