TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 109

File 450

SECRET

MEETING WITH KING OF TONGA 25 OCTOBER 1983

FUTURE OF HONG KONG

Brief by Foreign and Commonwealth Office

MKK040/5

RECEIVED IN REGISTRY

2 5 JCT 1983

DERK OFFICEN

INDEX

付!

یر

Acton Takes

Points to Make [Defensive]

(i) Sino-British talks through. diplomatic channels agreed September 1982. Meetings held Peking. Common aim of maintaining Hong Kong's stability and prosperity.

(ii) Second phase of talks began July. Four rounds have taken place. Meeting 19/20 October useful and

constructive. Next meeting 14/15 November. Chinese delegation led by Vice Foreign Minister Yao Guang, British by HMA Peking.

Governor of Hong Kong

participating as appropriate on British side.

(iii) Content of talks confidential.

(iv) We aim to seek settlement acceptable to Britain, China and people of Hong Kong. Their views taken fully

into account.

(v)

Chinese propaganda floats Hong Kong as Special Administrative Region (SAR) of China, with considerable autonomy and with lifestyle basically unchanged. (vi) Most Hong Kong people sceptical of SAR idea. Evidence suggests details rudimentary and basis for confidence not grasped. Investors need effective guarantees against Chinese interference. provided by British administration.

This at present

(vii) Central issue is to devise package inspiring confidence. Given agreed common aim, confident this possible.

(viii) Meanwhile important nothing said or done to damage confidence. This very fragile.

(ix) Contrary to apparent Chinese beliefs, British Government obtains from Hong Kong revenue only of normal trading partner.

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