TNAG-1257-FCO40-1590-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 7

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directly involving 'British interests' where there could be

more detailed discussion. We stressed need to fill in details

if stability, prosperity and long-term confidence was to be

maintained in Hong Kong and Parliament was to reach a considered

view of Chinese proposals.

With all Commonwealth Representatives

3. Sino-British talks through diplomatic channels agreed

September 1982.

Meetings held Peking.

Common aim of

maintaining Hong Kong's stability and prosperity.

4.

Second, more detailed phase of talks began July.

rounds since. Meetings 19/20 October and 14/15 November

useful and constructive. Next meeting 7/8 December.

Six

Governor

of Hong Kong participating since July.

5. We aim to seek settlement acceptable to Britain, China

and people of Hong Kong. Their views taken fully into account.

In close consultation through Governor with Hong Kong's

Executive Council (EXCO). Their role central.

Governor and

Unofficial members of EXCO visited London again 6-8 October.

to devise package inspiring confidence.

Given agreed common aim, confident this possible.

6.

Centr

Central issue:

7. Meanwhile important nothing said or done to damage

confidence in Hong Kong or atmosphere of talks.

understanding.

Grateful your

8. Chinese propaganda floats Hong Kong as SAR of China, with

considerable autonomy and lifestyle basically unchanged.

9. Most Hong Kong people sceptical of SAR idea. Evidence

suggests details rudimentary and basis for confidence not

grasped by Chinese.

Investors need effective guarantees

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