TNAG-1258-FCO40-1591-Third-countries-and-the-future-of-Hong-Kong-1984 — Page 89

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THE FINANCIAL AND LEGAL SYSTEMS. WE PLANNED TO GIVE THEM SEVERAL

FURTHER PAPERS DEALING PROGRESSIVELY WITH MORE DIFFICULT SUBJECTS.

4.

AFTER THE DECEMBER ROUND, THERE WOULD PROBABLY BE A SHORT

HIATUS WHILE OUR NEW AMBASSADOR TOOK UP THE REINS IN PEKING. WE

WOULD CONTINUE TO KEEP THE AMERICANS INFORMED PARTICULARLY PRIOR

TO PRESIDENT REAGAN'S VISIT TO CHINA.

5. IN RESPONSE TO A QUESTION FROM WOLFOWITZ, DONALD SAID WE

BELIEVED THAT THE CHINESE WANTED AN AGREEMENT THROUGH NEGOTIATION.

BUT SO FAR IT SEEMED THE CHINESE AIM WAS TO ENSURE BRITISH

CO-OPERATION IN THE TRANSITION TO CHINESE ADMINISTRAFION.

DEALING WITH QUESTIONS ABOUT THE CHINESE THREAT OF A DEADLINE,

DONALD SUGGESTED THAT THIS WAS TACTICAL PRESSURE RELATING PO

GETTING AGREEMENT ON THE PRINCIPLES RATHER THAN PRESSURE TO WORK

OUT ALL THE DETAILS.

6.

IN ANSWER TO FURTHER QUESTIONS, DONALD SAID WE DID NOT

BELIEVE THE CHINESE HAD MANY PRACTICAL IDEAS OF THEIR OWN BEYOND

THE ELEMENTS WHICH THEY HAD ALREADY LEAKED OR MADE PUBLIC.

BRITAIN HAD SOME NEGOTIATING LEVERAGE IN THE FORM OF KNOW-HOW,

FINANCIAL ACCESS, EXPERTISE AND ITS ROLE IN NEGOTIATING INTER-

NATIONAL TRADE AND OTHER AGREEMENTS FOR HONG KONG. THE CHINESE

HOPED TO SECURE OUR CO-OPERATION. THEY TENDED TO DISMISS THE

IMPORTANCE OF HONG KONG'S CONTRIBUTION IN FOREIGN EXCHANGE TO

CHINA, BUT PRIVATELY THEY RECOGNISED IT WAS STILL USEFUL. THERE WAS NO DOUBT THAT CHINA HAD OFFICIALS, LIKE THOSE IN THE BANK OF CHINA, WHO WERE PERFECTLY FAMILIAR WITH THE HONG KONG SYSTEM. HIGHER UP THE SCALE UNDERSTANDING WAS LESS, AND MUCH MIGHT DEPEND

ON THE ADVICE GIVEN TO DENG XIAOPING WHO WAS FOLLOWING THE ISSUE

PERSONALLY.

7. ASKED ABOUT THE TIME-SCALE, DONALD SAID THAT WE DID NOT WANT

TO RUSH MATTERS. WE MIGHT NEED TIME TO GET THE RIGHT SOLUTION

AND TO DO RIGHT BY THE PEOPLE OF HONG KONG. BUT EQUALLY, гос

MUCH DELAY COULD HAVE A DAMAGING EFFECT ON CONFIDENCE.

8. FACKLED ON THE RELATIONSHIP BETWEEN HONG KONG AND TAIWAN,

DONALD SAID WE BELIEVED THIS WAS A FACTOR IN CHINESE MINDS.

NEVERTHELESS, THE CHINESE THEMSELVES DREW A DISTINCTION BETWEEN FAIWAN AS A PROBLEM BETWEEN CHINESE PEOPLE (UNFINISHED BUSINESS

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