TNAG-1260-FCO40-1600-Briefings-for-Ministers-and-FCO-officials-on-the-future-of-H-1983 — Page 84

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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 continue to be internationally tradable, this will just happen. Hong Kong people and investors need proof of effective guarantees against Chinese interference.

7.

Central issue is to devise package in which Hong Kong people will have confidence. Must therefore agree arrangements which will

reassure them. Given joint Sino-British aim, confident such an arrangement can be worked out.

8.

British Government obtains no revenue from Hong Kong, other than that of normal trading partner, contrary to what Chinese seem

to think.

9.

Important that nothing is said or done that might damage confidence in Hong Kong. Grateful for your understanding on this

point.

[ DEFENSIVE]

Sovereignty

10.

Chinese and British positions well known. We fully realise

importance of sovereignty issue to China. We are not inflexible. Are willing to consider any solution to Hong Kong's future which will be acceptable to Britain, China and Hong Kong.

Acceptability

11.

We are taking views of the people of Hong Kong fully into

account. Made known to us and the Governor many channels. In this

context, Governor and Unofficial Members of Hong Kong's Executive

Council visited London early July for consultations with Ministers. Mr Luce will visit Hong Kong 24-29 September.

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