TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 76

CONFIDENTIAL

26453-1

HKK04015

RECEIVED IN REGISTRY

PP UKREP BRUSSELS

GRS 433

CONFIDENTIAL

FM FCO 211700Z OCT 83

TO PRIORITY UKREP BRUSSELS

TELEGRAM NUMBER 553 OF 24 OCTOBER

INFO ROUTINE PEKING, HONG KONG

1983 آثار

FICER

REGISTRY

INDEX

PA

Action Taken

FOR POWELL FUTURE OF HONG KONG VISIT TO CHINA BY GASTON THORN

451) PRESIDENT OF THE EC MIPT

BRIEFING LINE

1. ANGLO-CHINESE TALKS TAKING PLACE THROUGH DIPLOMATIC CHANNELS IN PEKING SINCE SOON AFTER MRS THATCHER VISIT TO CHINA IN SEPTEMBER 1982. COMMON AIM OF MAINTAINING STABILITY AND PROSPERITY OF HONG KONG.

2.

USEFUL AND CONSTRUCTIVE BUT PROGRESS FAIRLY SLOW. CHINESE SEEK RECOVERY OF SOVEREIGNTY IN 1997 AND REGARD SOVEREIGNTY AND ADMINISTRATION AS INDIVISIBLE.

3. MORE DETAILED PHASE OF TALKS BEGAN IN JULY. CHINESE DELEGATION LED BY VICE FOREIGN MINISTER YAO GUANG BRITISH DELEGATION BY HMA PEKING. GOVERNOR OF HONG KONG HAS PARTICIPATED ON BRITISH SIDE SINCE JULY. LATEST SESSION WAS 19/20 OCTOBER NEXT SESSION 14/15 NOVEMBER.

4. OUR AIM TO SEEK A SETTLEMENT ACCEPTABLE TO BRITAIN CHINA AND PEOPLE OF HONG KONG. VIEWS OF LATTER TAKEN FULLY INTO ACCOUNT. 5. CHINESE PROPOGANDA FLOATS PLAN FOR HONG KONG TO COME WITHIN THE CHINESE

STATE BUT WITH CONSIDERABLE AUTONOMY AND FUNCTIONING ESSENTIALLY AS IT DOES NOW. HONG KONG WOULD BECOME A SPECIAL ADMINISTRATIVE REGION (SAR) OF CHINA UNDER ARTICLE 31 OF THE CONSTITUTION. GOVERNMENT WOULD BE DRAWN FROM THE LOCAL PEOPLE OF HONG KONG. ECONOMY AND BASIC FREEDOMS WOULD BE 'PROTECTED' AND THE LAWS WOULD BE 'BASICALLY UNCHANGED'. THERE WOULD BE INDEPENDENT CONVERTIBLE CURRENCY AND 'EXISTING EXTERNAL RELATIONS IN THE ECONOMIC AND CULTURAL FIELDS' WOULD BE MAINTAINED.

6. MOST HONG KONG PEOPLE SCEPTICAL. PLAN IS SUPERFICIALLY ATTRACTIVE, BUT LACKS KEY INGREDIENT FOR CONFIDENCE

AN INSULATOR

1

CONFIDENTIAL

(460