TNAG-1260-FCO40-1600-Briefings-for-Ministers-and-FCO-officials-on-the-future-of-H-1983 — Page 58

SECRET

Prime Minuter's talles wat Lubbers and chancellor Kohl, 19-21

September 1983

[DEFENSIVE]

with Mr.

POINTS TO MAKE (CHANCELLOR KOHL)

1. Lady Young/Mr Rifkind briefed Dr Mertes during visit to London

12-13 September.

2. Second (ie more detailed) phase of talks began in July. Will

reconvene 22/23 September after seven week recess. Chinese

delegation led by Vice Foreign Minister Yao Guang, British

delegation by HMA Peking. Governor of Hong Kong participating as

appropriate on British side.

3. Content of talks confidential. Atmosphere generally friendly though Chinese line on substance tough throughout. We have given nothing away.

4. Our aim is to seek a settlement acceptable to Britain, China and

people of Hong Kong. Their views being taken fully into account.

Made known to us and Governor through many channels. We are in close

consultation, through the Governor, with Hong Kong's Executive

Council (EXCO). Mr Luce to visit Hong Kong 24-29 September.

5. Chinese propaganda has floated idea of Hong Kong as (Special

Administrative Region (SAR) under Chinese constitution, with

considerable autonomy and functioning essentially as it does now. Propaganda campaign aimed at undermining our position. Party General Secretary, Hu Yaobang, told Japanese reporters on 15 August

that China would recover sovereignty over Hong Kong on 1 July 1997.

He gave erroneous impression. We have conceded nothing.

Evidence

6. Most people in Hong Kong sceptical of this SAR idea. suggests Chinese have not thought through most detailed issues involved. They seem to assume that by saying Hong Kong will continue to be financial/commercial centre or that currency will

ARADTIM