TNAG-1301-FCO40-1657-Visits-by-Richard-Luce--Minister-of-State-for-Foreign-and-Co-1984 — Page 133

THE FUTURE OF HONG KONG

IN CONFIDENCE

5.6 The Chinese consider the Treaties relating to the cession of Hong Kong and the lease of the New Territories (paragraph 1.1 above) as "unequal treaties" forced on China during a period of internal

They have, weakness and they do not, therefore, recognise them. however, hitherto regarded Hong Kong as a problem left over from history, to be settled when the time is right, and have been content to leave things as they are, particularly in view of the practical Hong Kong is a valuable direct source value of Hong Kong to them.

of convertible currency (estimated at approximately 30% of total Chinese earnings of foreign exchange) mostly earned from foodstuffs,

It is also, as invisibles and remittances to relations in China.

the only deep water port on the South China coast, an important entrepot.

5.7

The

During the Cultural Revolution, widespread unrest throughout China spilled over into Hong Kong, especially in 1967/68. imprisonment of rioters in Hong Kong and the refusal to bend to Chinese pressure for their release led to the sacking of the British

China now displays a much more Mission in Peking.

relaxed and pragmatic attitude towards Hong Kong and has been notably cooperative in recent years.

There are substantial,

and increasing, Chinese investments in Hong Kong and large numbers of Chinese officials in, for example, the New China News Agency (NCNA), the Bank of China and many trading and other organisations. The Hong Kong Government's regular contacts with the Chinese are relaxed and easy; there is close contact with the Shenzhen and Guangdong authorities on matters of mutual concern.

5.8 In 1982, the Chinese Government began to focus more closely on

They publicly stated that the question of the future of Hong Kong. they intended to "recover" sovereignty over the whole of Hong Kong, but that they wished to maintain its prosperity and stability. Useful contacts between the British and Chinese Governments had taken place when Lord Carrington visited China in April 1981, and

The process of during the Lord Privy Seal's visit in January 1982. consultation was stepped up during the Prime Minister's visit to

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IN CONFIDENCE