TNAG-1260-FCO40-1600-Briefings-for-Ministers-and-FCO-officials-on-the-future-of-H-1983 — Page 30

BACKGROUND

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1.

Lord Shawcross has visited China on several occasions, both

privately and on behalf of Morgan Guaranty for which he is a special

adviser. The Chinese pay him special attention. He has been received in China at a high level and is in close touch with the Chinese Embassy.

The

Secretary of State will therefore wish to take a cautious line.

2.

Lord Shawcross has a keen interest in Hong Kong, where the

Morgan Bank is active. Following a visit there last autumn (during

which he took a line generally helpful to HMG) Lord Shawcross asked

Mr Pym for an assessment of the Hong Kong situation on 17 December

1982.

3. Lord Shawcross was subsequently briefed on Hong Kong by Mr

Giffard on 28 April 1983 before visiting China in May as the guest

of the Chinese People's Institute of Foreign Affairs. During that

visit Lord Shawcross met Assistant Foreign Minister Zhou Nan, who

spoke about Hong Kong's future, and to whom Lord Shawcross pointed up the importance of maintaining confidence in Hong Kong.

4. Lord Shawcross called on Mr Luce on 7 September. He floated the idea of 'internationalising' Hong Kong's Executive Council

within the context of Chinese proposals for an autonomous Hong Kong. Lord Shawcross aired this concept again in his letter to 'The Times'

C of 23 September. The letter otherwise took a generally helpful line

about the basis for confidence in Hong Kong and the need to seek an

agreed settlement on the Territory's future.

:

Hong Kong Department

30 September 1983

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER

SECTION 3 (4) OF THE PUBLIC RECORDS ACT 1958

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