TNAG-1263-FCO40-1606-Parliamentary-contacts-on-the-future-of-Hong-Kong-1983 — Page 137

CONFIDENTIAL

FUTURE OF HONG KONG: BRIEFING FOR CONSERVATIVE BACKBENCHERS

POINTS TO MAKE

1.

Stress confidentiality.

2. Since briefing on 18 July, further meetings in Peking 25/26

July, 2/3 August and 22/23 September. Session taking place now, 19/20 October. Governor of Hong Kong involved in all of these.

3.

4.

Chinese line on substance increasingly tough:

(a) Hong Kong is integral part of China.

14.

(b) China will recover exercise of sovereignty over Hong Kong

in 1997.

(c) Sovereignty and administration indivisible. No

flexibility.

(d) When China has recovered sovereignty, will pursue special

policies to maintain Hong Kong's prosperity, making

it a Special Administrative Region (SAR) of China.

(e) Britain and China can reach agreement if there is a real

desire for settlement and a realistic 'spirit'.

(f) China's policy is fully in accordance with the wishes of

the Chinese people including people of Hong Kong.

In July and August we concentrated on trying to educate Chinese on Hong Kong's complexities and basis for confidence. At September

meeting we tried to induce them to elaborate on their own ideas,

while stressing our view that best way of maintaining confidence was

continuation of British administration. Chinese stuck to line that

we must accept their precondition of transfer of sovereignty and

administration to China.

CURRENT SESSION

5.

Our aim is to discuss, without prejudice to any final

agreement, what other effective ways (apart from British

CONFIDENTIAL