TNAG-1260-FCO40-1600-Briefings-for-Ministers-and-FCO-officials-on-the-future-of-H-1983 — Page 125

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8 ACM Siddhi had asked the Americans why the Hong Kong and

Taiwan questions loomed so large in the USA.

American officials

had replied that they had no control over what was said in their

Press or their Congress and that both Hong Kong and Taiwan were

given a great deal of prominence.

9 Mr Luce said that the question of Hong Kong's stability had to

be based on a mutual understanding between the UK and China of what

made for that stability. Mr Donald said that the Chinese were

mistaken in believing that the UK derived huge profits from its link

with Hong Kong. The UK needed to make China understand that the

present system was the best guarantee the people of Hong Kong had

against political interference. Mr Luce added that friends like

Thailand could help by making this clear to the Chinese.

10 ACM Siddhi believed that China's strategy was a global one.

They wanted friends not only in ASEAN but throughout Europe and the

Third World. Mr Donald felt it was encouraging that the Chinese

were taking an interest in arms control since Russian missiles were

directed not only at Europe but also at Asia. ACM Siddhi said that

the Chinese outlook was a long-term one. Their objectives were 20

to 30 years in the future and their approach was pragmatic. Mr Luce

thanked the Foreign Minister for his advice and suggested that the

discussion might continue over lunch.

11 The meeting closed at 12.40 pm.

South East Asian Department

29 July 1983

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CONFIDENTIAL