CONFIDENTIAL
IMMEDIATE
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to end the uncertainty.
right solution than to rush. The Chinese have mentioned a deadline of September 1984, but this does not rule out a
continuation of the talks thereafter.
But it is more important to find the
Of course it will be for
·
the British Parliament to give its approval to any agreement which might be reached in negotiation.
11. Hong Kong's economy is in excellent shape and an export-led
recovery is clearly underway. In 1983 Hong Kong's exports increased by 26 per cent and imports by 23 per
23 per cent over 1982 levels. A growth rate of over 6 per cent is expected in the current financial year. Uncertainty over the future periodically affects the Hong Kong Stock Market, but it is important not to lose sight of other factors from the international economy which can affect such indices. Since October 1983 the Hang Seng Index has shown a strong overall rising trend. The exchange value of the Hong Kong dollar, which has been linked to that of the US dollar is steady.
(FOR USE ONLY IF PRESSED)
12. If asked if the UK has conceded sovereignty you can say that по concessions have been made by either side which would
anticipate the nature of any final agreement.
13. If asked to
comment on public statements or remarks from Chinese sources or by those of a third party, you should stick to the general line that it is what is said at the conference table which matters. We do not regard the outcome of the talks as prejudged by anything said outside them.
14. If it is suggested that the Secretary of State's visit to Peking and Hong Kong reflects a crisis or a crucial turning paint in the negotiations you should deny this firmly. The Easter recess provides a good opportunity for the Secretary of State to take stock of the negotiations in direct discussion with Chinese leaders. The language of the communiques (para 3 above) is in no way indicative of crisis.
HOWE
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