TNAG-1258-FCO40-1591-Third-countries-and-the-future-of-Hong-Kong-1984 — Page 71

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SECRET

VISIT OF CANADIAN SECRETARY OF STATE FOR EXTERNAL AFFAIRS:

11-15 DECEMBER 1983

POINTS TO MAKE

FUTURE OF HONG KONG

1.

As you know, keeping your government regularly informed.

Second, more detailed phase of Sino-British talks began 12 July.

Seven rounds since. Last three described as 'useful and

constructive'.

2.

At October meeting we proposed discussion on basis of China's

proposals but without prejudice to our own position or to any final

agreement. Well received.

Chinese restated their

3. November session heavier going.

sovereignty/administration premise. Ready to hear our views on

practical arrangements for Hong Kong after 1997. But sticky on

discussion of detail. We stressed need to tackle detail if

confidence was to be sustained.

4.

Chinese doubts about our motives. At November round, and subsequently through informal contacts we explained that, without prejudice to our position or to eventual agreed package, we should

not be proposing, for the purpose of the talks arrangements

involving authoritative link between Hong Kong and UK.

5. Our reassurances well received. December round more positive.

Atmosphere good. Chinese more willing to discuss practicalities.

Detailed examination of Chinese ideas for Hong Kong's:

(a)

legal system;

(b)

financial system;

(c) external economic relations.

6.

Clear there is common ground in some areas,

especially on (b) and (c). But in some much more work is needed.

"RET