TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 118

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CONFIDENTIAL

TELELETTER

FRUM S J GUMERSALL, WASHINGTON

FILE REFERENCE WIL

DATED 18 OCTOBER 1933

FOLLOWING FOR W MORRIS ESQ HKDG, FCU

A C GALSWORTY ESQ, PEKING

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KJT MCLAREN ESQ, POLITICAL ADVISER, HONG KONG

1. YOU WILL HAVE SEEN MY TELELETTER TO NIGEL COX OF 14 OCTOBER. AT AN OFF THE RECORD LUNCHEON OF THE ASIA SOCIETY IN WASHINGTON TODAY, ASSISTANT SECRETARY WOLFOWITZ WAS ASKED BY RICHARD NATIONS, WASHINGTON CORRESPONDENT OF THE FAR EASTERN ECONOMIC REVIEW, HOW HONG KONG FITTED INTO US POLICY WITH REGARD TO ASIA AS A WHOLE,

WHETHER THE US GOVERNMENT HAD DISCUSSED THE PROBLEM WITH BRITAIN UK THE CHINESE, AND WHETHER THE PRESIDENT WOULD VISIT HONG KONG

DURING ONE OF HIS ASIAN VISITS.

2. WOLFOWITZ REPLIED THAT BECAUSE OF THE US ECONOMIC STAKE IN HONG KUNG, THE FUTURE OF HONG KONG WAS OF DIRECT IMPORTANCE TO THE UNITED STATES AND HAD INDIRECT BEARING ON OTHER REGIONAL QUESTIONS. FOR A NUMBER OF REASONS, NOT LEAST THE HUGE ADDITIONAL BURDENS WHICH WOULD FALL ON THE UNITED STATES AND SOUTH EAST ASIA IN THE EVENT CF A MAJOR EXODUS OF REFUGEES FROM HONG KONG, THE UNITED STATES

HAJ A STRUNG INTEREST IN A SUCCESSFUL SOLUTION WHICH PRESERVED THE STACILITY AND PROSPERITY OF HONG KONG. THIS INTEREST WAS SU GREAT THAT THE UNITED STATES HAD DECIDED TO KEEP OUT OF THE ISSUE (SIC). THEY HAD MADE IT CLEAR TO BOTH CHINA AND BRITAIN THAT THEY WISHED TO SEE AN OUTCOME WHICH PRESERVED STABILITY AND PROSPERITY. BUSINESS CONFIDENCE WAS A VERY DELICATE THING WHICH WAS DIFFICULT TO UNDERSTAND AND NOT SOMETHING WHICH THE CHINESE OUGHT TU PRESUME UPON. SUT THE QUESTION OF HONG KONG'S FUTURE WAS DIFFICULT ENOUGH

WITHOUT THE UNITED STATES BECOMING INVOLVED.