SECRET
FUTURE OF HONG KONG : BRIEFING THE OPPOSITION : MR STEEL/DR OWEN
POINTS TO MAKE
1.
Recall that Mr Pym gave briefing in May.
Useful to update.
2.
Stress confidentiality.
3.
Limited to
Progress in Sino-British talks initially slow. procedural matters because Chinese insisted we first recognise their
premise of sovereignty over whole of Hong Kong.
4. We found way of overcoming this obstacle and concentrating on
need to find workable arrangements after 1997 acceptable to
Parliament, China, and Hong Kong. Main objective: to retain Hong Kong's freedom and way of life. Gave nothing away. Stressed Parliament alone can decide final outcome of negotiations.
5.
Six rounds
Second, more detailed, phase of talks began 12/13 July. Five
14/15 November Fifth and fix in rounds meetings in second phase. Latest 19/20 October. Described by both
sides as useful and constructive.
Next, 14/15 November 7/8 Decenser.
6. British delegation led by HMA Peking. Chinese delegation led by Vice Foreign Minister Yao Guang. Governor of Hong Kong
participating as appropriate on British side. Has attended all sessions to date.
7. Atmosphere generally friendly though Chinese tough on substance.
They demand sovereignty and maintain sovereignty/administration indivisible. Have also spelt out plan for Hong Kong as Special Administrative Region (SAR) of China. Main points:
(a) government to be drawn from local people of Hong Kong.
(b) Hong Kong's economy and basic freedoms would be protected and laws basically unchanged.
(c) Financial autonomy. Independent convertible currency would be retained. Hong Kong would remain a free port. Existing external relations would be maintained in economic/cultural fields.
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