TNAG-1263-FCO40-1606-Parliamentary-contacts-on-the-future-of-Hong-Kong-1983 — Page 150

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MR WALDEN'S DRAFT ARTICLE IN THE TIMES AND COVERING LETTER TO THE SECRETARY OF STATE.

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1.

Please see the attached from Private Office to which we are asked to submit a draft reply by 30 September.

2.

As I recall we saw an earlier version on this draft article at the end of last week. Mr Clift, I believe, spoke to Mr Walden with one or two suggestions. I do not have a copy of the original draft but I have the impression that some, although not all of our suggestions have been incorporated in this latest version.

3.

I think in general it is a helpful piece and I do not think there is much with which we would try and alter. I do have the following points however:

4.

(a) I think it would be helpful if the point in paragraph 2

about Peking worrying more about the Hong Kong Dollar could be enlarged, given the current state of confidence in Hong Kong.

(b) At the bottom of page 2 I am not too happy about the

phrase 'is tempted to take it back', perhaps 'and wishes to recover control over it' would be better.

(c) In the middle of page 3, Mr Walden could perhaps make

the point that we do not obtain revenue from Hong Kong nor do we control their reserves. As the passage is written as present it does suggest we make a good deal of money, one way or another, out of Hong Kong.

(d) An additional point which might be made is that whatever is decided eventually, the people of Hong Kong will want guarantees that life will go on much as now. Likewise investors in Hong Kong will want guarantees that the systems there will continue at least for a considerable period. Without guarantees there will be no confidence and without confidence there will be no Hong Kong Dollar. This would not just hit Hong Kong but would hurt China very much.

I should be happy to draft a reply for the Secretary of State but before I do so I should be grateful for your views on the points I have suggested and any other points which the letter might contain.

2913

HKK 040/10.

RECEIVED IN REGISTRY

3 JCT 1983

DESK OFFICER

28 September 1983 INDEX

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