TNAG-1298-FCO40-1653-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1984 — Page 23

CONFIDENTIAL

(iii) New Territories, leased in 1898. Lease expires

on 30 June 1997. 92% of Hong Kong's total area.

Over 50% of the population live there.

6. Talks on future agreed when Prime Minister visited

China September 1982.

7. Second, more detailed phase began July 1983. Twelve

rounds since, through diplomatic channels inPeking. Latest

round yesterday and today (11 and 12 April).

8.

Atmosphere good. Both sides recognise that talks have

been useful and constructive, and that real progress has

been made. Content confidential. Common aim of maintaining

Hong Kong's stability and prosperity. British aim is to

find a solution acceptable to British Parliament, China and

Government and Hong Kong people.

9. We want best possible deal for Hong Kong people. Our

only return from Hong Kong is that of normal trading partner.

10. We believe continuing stability and prosperity best

assured by:

(a)

(b)

Continuity of systems. (eg legal, financial, commercial,

social).

Minimal outside interference, as now.

11. As Sir G Howe said in the House on 22 March, "at present

continuity is assured by British administration but in 1997

Britain's lease of 92% of the territory comes to an end. In

those circumstances it becomes possible and indeed desirable

to visualise other ways in which continuity can be assured."

CONFIDENTIAL

/12.