TNAG-1258-FCO40-1591-Third-countries-and-the-future-of-Hong-Kong-1984 — Page 56

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FUTURE OF HONG KONG: BRIEFING THE AUSTRALIANS

1.

Mr Benson of the Australian High Commission called on

12 December. I briefed him as follows:

(a) Our explanation at and after the sixth round of talks that,

for the purpose of the negotiations, we did not envisage

(b)

(c)

(d)

(e)

(f)

2.

a continuing authoratitive link between the UK and Hong Kong had got home to the Chinese.

At the seventh round they welcomed our explanation and did not press for any further acceptance of their premise.

They engaged for the first time in detailed exchange about specific areas, in particular the legal system, the financial system and external economic relations.

Some common ground was identified. For instance they recognised the need for Hong Kong to have full financial independence and a special regime within GATT.

There are clearly still problems. On some issues they have raised points which could cause difficulty. We are seeking clarification.

It is not clear how far we shall be able to alter the Chinese views on contentious points. But we had at any rate got them at least to fill out their proposals with further ideas reflecting the suggestions we had made. They had also indicated readiness to listen to our further comments in return and consider them.

Mr Benson asked about press reports of a British review of strategy. I said that we kept our position under constant review. We should of course be studying the position again in the gap before the next round. He also asked about the September 1984 deadline. I said that I thought the Chinese certainly meant to stick to this but that we would work on their declared interest in a bilateral rather than unilateral statement.

3.

Mr Benson was grateful. He emphasised that he is reporting these briefings under secret classification with caveats to ensure that the information is given very restricted handling in Canberra.

12 December 1983

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