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6. In the fifth round of talks (19/20 October) began detailed discussions on China's proposals for Hong Kong as a Special Administrative Region (SAR) of China but without prejudice to our own position or a final agreement. In following rounds China added more detail to their plan for a Hong Kong SAR. Some measure of agreement, but much exploration still necessary.
7.
China's plan not yet clear in all respects. But under it Hong Kong would remain basically 'unchanged' for a period of 50 years.
8. Have put over some detailed material in the form of informal working papers for China's consideration, with aim of getting China to expand their detailed thinking on such areas as Hong Kong's financial and legal system.
9.
During eighth round of talks (25/26 Januray) further consideration of details.
Atmosphere good. Talks were
'constructive and useful'
10. Sir R Evans now leading British team. On Chinese side, the Vice Foreign Minister Yao Guang has been replaced by Assistant Foreign Zhou Nan. The Chinese informed us in advance of the change and were at pains to stress that there was no question of the talks having been downgraded.
11. No overall timetable for talks. We (like Chinese), want satisfactory settlement as soon as possible. But right solution more important than rushing. Chinese mention September 1984 but this does not rule out a continuation of talks thereafter. Of course, the British Parliament has to be involved and give its approval to any agreement.
Governor
12. We are in close touch with opinion in Hong Kong. participates on British side. Governor and EXCO Unofficials in London 13-17 January. Comprehensive review of talks with Prime Minister and Secretary of State. Close identity of views.
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