TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 93

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SECRET

The substance of Wu's presentation would be all too familiar to you. The assumption of sovereignty over all of the British administered territory was, he said, fundamental to China's current position. He emphasized that it was not China's intention to disrupt either the social or economic fabric of Hong Kong by assuming sovereignty. Indeed, he forcefully reiterated the importance of assuring stability for Hong Kong in the long term.

Your negotiators are no doubt familiar with the following points which Wu emphasized would underpin the Chinese Government's policy vis-à-vis Hong Kong following 1997:

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Foreign businesses, including British businesses, would continue operating without interference;

the judicial system would remain unchanged;

the right of final appeal in judicial matters would be vested in Hong Kong;

the only wording changes in existing Hong Kong

laws would reflect the Peoples' Republic of China's sovereignty;

international economic relations would remain unchanged;

the Hong Kong dollar would remain in use; and

general elections would allow Hong Kong residents to administer Hong Kong as a "Special administrative region".

Throughout Wu's presentation, there was no discussion of a possible role for Britain beyond 1997. He repeated that sovereignty and administration, in Chinese eyes, must go hand in hand.

In concluding his remarks, Wu stated that "we do not wish to export revolution" and left the implication that China had no immediate thought of communizing Hong Kong. He stated with equal emphasis that the Peoples' Republic of China wished to keep Hong Kong as a principal trading centre, not only in the Far East but in the world.

I certainly do not wish to insert myself in your delicate and complex talks with the Chinese. I would inform

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