TNAG-1260-FCO40-1600-Briefings-for-Ministers-and-FCO-officials-on-the-future-of-H-1983 — Page 103

SECRET

13. Chinese will certainly present their proposals to Mr Heath as reasonable solution and criticise HMG for not accepting the. They will probably maintain that British interests can be met, with the implication that these are confined to commercial profit.

14.

(a)

(b)

(c)

Helpful if Mr Heath can get over following points:

Britain is not in the game for old fashioned colonial or commercial reasons. In practice Hong Kong is neither a financial benefit or liability to the UK.

">

We are concerned about the basis of stability and prosperity. In the Long

run this depends on people's confidence that

present systems will continue.

British administration provides that confidence. It is a practical assurance of continuity. Without it people would fear that later China would absorb Hong Kong. Confidence in continuity of 'systems' cannot be assured simply by statements that they will continue.

These are contained in suggested written brief.

Hong Kong Department

10 August 1983

1

SECRET