TNAG-1258-FCO40-1591-Third-countries-and-the-future-of-Hong-Kong-1984 — Page 4

SECRET

TELELETTER

FROM:- SIR PERCY CRADOCK PEKING

FILE REF 020/393/9 DATED 20 OCTOBER 1983

FOLLOWING FOR:- A DONALD ESQ., AUSS FCO

COPIED TO:-

D THOMAS ESQ WASHINGTON

R MCLAREN ESQ., HONG KONG

1. I HAVE SEEN YOUR TELELETTER OF 14 OCTOBER TO DEREK THOMAS

ABOUT YOUR NEXT VISIT TO THE UNITED STATES FOR DISCUSSIONS ON ASIA, AND HIS REPLY OF 18 OCTOBER.

2. WE HAVE BEEN BECOMING A LITTLE CONCERNED HERE

THAT WE HAVE NOT RECENTLY BROUGHT THE AMERICANS UP TO DATE IN DETAIL WITH THE STATE OF OUR NEGOTIATIONS. AS YOU WILL RECALL WE ORIG-

INALLY BRIEFED SCHULTZ VERY THOROUGHLY IN WASHINGTON ON MRS

THATCHER'S DISCUSSIONS HERE LAST AUTUMN. THE LATEST

OCCASION ON WHICH WE HAVE GIVEN THEM ANY BRIEFING,

AND IT WAS NOT AT ALL DETAILED, WAS ON 30 SEPTEMBER WHEN THE GOVERNOR BRIEFED WE INBERGER'S PARTY IN HONG KONG.

WE THINK THAT IT WOULD BE ADVISABLE TO BRING THEM CLOSER INTO OUR CONFIDENCE FOLLOWING THE MEETINGS ON 19-20 OCTOBER. THIS WOULD BE A GOOD MOMENT, AS HOPEFULLY THAT SESSION WILL MARK A CHANGE OF COURSE. WITH THE PROSPECT OF SOME REAL PROGRESS IT IS POSSIBLE THAT THE AMERICANS WILL BE ABLE TO GIVEE US SOME CONCRETE HELP, AND IT IS RELEVANT THAT ZHAO WILL BE GOING TO THE UNITED STATES IN JAE, 9£Y AND PRESIDENT REAGAN COMING HERE NEXT SPRING. IN THE LONG RUNG IF WE DO EVENTUALLY REACH

AGREEMENT WITH THE CHINESE ON ARRANGEMENTS FOR HONG KONG AS A SPECIAL ADMINISTRATIVE REGION, WE SHALL NEED UNDERSTANDING AND SUPPORT FROM THE AMERICANS, AND OTHERS - IN MAINTAINING HONG KONG'S ACCESS TO THEIR MARKETS ON THE UNDERSTANDING THAT PEKING DOES

NOT VIOLATE THE AGREEMENT. I THEREFORE HOPE THAT FOLLOWING THIS SESSION YOU WILL GIVE DEREK THOMAS AUTHORITY TO SPEAK IN WASHINGTON, AND MYSELF AND THESGOVERNOR TO DO SO IN PEKING

AND HONG KONG RESPECITVELY, AND TO GIVE A FAIRLY DETAILED ACCOUNT.

671