TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 160

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TELELETTER

FROM S J GOMERSALL, WASHINGTON 10.

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DATED 18 OCTOBER 1983

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R JT MCLAREN ESQ, POLITICAL ADVISER, HONG KONG

417 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 OR 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 KONG, 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 OF A MAJOR EXODUS OF REFUGEES FROM HONG KONG, THE UNITED STATES HAD A STRONG INTEREST IN A SUCCESSFUL SOLUTION WHICH PRESERVED THE STABILITY AND PROSPERITY OF HONG KONG. THIS INTEREST WAS SO 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 TO PRESUME UPON. BUT THE QUESTION OF HONG KONG'S FUTURE WAS DIFFICULT ENOUGH WITHOUT THE UNITED STATES BECOMING INVOLVED.

3. DON ANDERSON, DIRECTOR FOR CHINA IN THE STATE DEPARTMENT, ELABORATED FOR ME ON DISCUSSION OF HONG KONG BETWEEN SHULTZ AND THE CHINESE FOREIGN MINISTER LAST WEEK (MY TELELETTER TO COX REFERS). ANDERSON SAID THAT IN THE COURSE OF A FAIRLY MODERATE EXPOSITION OF THE CHINESE ATTITUDE TOWARDS TAIWAN, WU HAD SPOKEN AT SOME LENGTH ON HONG KONG, LINKING THE TWO ISSUES AND STRESSING THAT DENG XIAOPING'S STATEMENTS ON TAIWAN AND HONG KONG WERE OF PARTICULAR IMPORTANCE AND SHOULD BE STUDIED CAREFULLY. HE SAID THAT CHINA'S DEMANDS ON SOVEREIGNTY WERE NON-NEGOTIABLE AND DESCRIBED THE FUTURE OF HONG KONG UNDER CHINESE SOVEREIGNTY IN STANDARD TERMS: AS A SPECIAL ADMINISTRATIVE REGION, HONG KONG WOULD MAINTAIN EXISTING FREEDOMS. HONG KONG AND TAIWAN WERE INTERNAL AFFAIRS OF CHINA. THERE WAS NO PRECEDENT IN HISTORY FOR HAVING TWO SOCIAL SYSTEMS UNDER ONE STATE. BUT CHINA HAD MADE THAT DECISION IN THE INTERESTS OF STABILITY AND PROSPERITY IN THE REGION. WITH REGARD TO HONG KONG, CHINA HAD DISCARDED OTHER MEANS WHICH IT COULD HAVE EMPLOYED. THE QUESTION WAS PRIMARILY A MATTER OF TRUST WHETHER THE OUTSIDE WORLD BELIEVED CHINA WOULD STICK TO ITS POLICY. (ANDERSON CONFIRMED THAT WU HAD SAID THAT). HE HOPED THE US WOULD STUDY THE CHINESE POSITION CAREFULLY. ANDERSON SAID THAT IN REPLY, SHULTZ HAD MADE NO MORE THAN A BLAND STATEMENT OF US INTEREST IN THE CONTINUED STABILITY AND PROSPERITY OF HONG KONG.

SIGNED S J GOMERSALL

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