TNAG-1260-FCO40-1600-Briefings-for-Ministers-and-FCO-officials-on-the-future-of-H-1983 — Page 71

BRIEF

CONFIDENTIAL

MR GIFFARD'S MEETING WITH LORD SHAWCROSS ON

THURSDAY 28 APRIL 1983

POINTS TO MAKE

1.

Position little changed since Secretary of State had lunch with you last December.

2.

Common aim of maintaining Hong Kong's stability and prosperity demands that confidence in Hong Kong remains high.

3.

Confidence in Hong Kong obviously will be damaged if the negotiation is a long drawn out affair.

4.

Confidence also damaged by certain Chinese statements on

Hong Kong, eg those that prejudge the outcome of the

negotiations.

5.

Confidence is linked to British administration and the

existing system.

6.

Not sure that the Chinese appreciate all these points (2 to 5). We need to get them home to them and encourage them to enter detailed negotiation with us. We are ready. Anything you can do to help put these points across to the Chinese most

helpful.

7.

Chinese propaganda has maintained that they favour Hong Kong people running their own affairs. But they fail to explain how they would guarantee that there would be no interference by the PRC. Nor do they provide convincing arguments that the confidence of the population and of investors

could be maintained. Particularly weak on the basis for an independent convertible currency.

CONFIDENTIAL