TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 218

Comment

CONFIDENTIAL

2.

How far the position outlined by Wu is a negotiating position is hard to judge. Despite disclaimers, Wu Xueqian and his colleagues presumably recognise the need to strike some sort of balance between putting appropriate pressure on Britain to make concessions and avoiding a situation where confidence inside Hong Kong was irreversibly eroded. In any event Mr Hayden took the opportunity to suggest to Wu that British concerns were not to be dismissed lightly. He said that, in the Australian view, the British were genuinely worried that a continuation of the present uncertainty and drift could lead to an exodus of capital from Hong Kong. He suggested that an inadequate acknowledge- ment of the special characteristics of Hong Kong could lead to a situation there which could be harmful to China and other countries of the region.

CONFIDENTIAL