TNAG-1309-FCO40-1666-Future-of-Hong-Kong-1984 — Page 26

SECRET

HKD

CABINET: 12 APRIL 1984

HONG KONG

1.

I shall be visiting China from 15 to 18 April and Hong Kong

from 18 to 20 April. In Peking my main task will be to impress

on the Chinese the importance of a binding bilateral agreement

which spells out in some detail what the post-1997 arrangements

will be. I shall also be arguing that, while we want to get on

with the negotiations and look for a signed agreement this year,

their idea of working for a signed agreement by their September

deadline is quite out of the question because there would be

insufficient time for Parliament to consider it before the July

Recess. My third aim will be to argue our case on a number of

important outstanding questions in the talks, such as

nationality and the stationing of Chinese forces in Hong Kong

after 1997.

2.

In Hong Kong there will be an important job of reassuring

people that we are still fighting for their essential interests.

At the same time I intend to make a statement, about which I

shall inform the Chinese beforehand, which will give a foretaste

of the sort of arrangement which we are likely to agree with the Chinese, ie one not involving continued British administration.

This is important, both because of frustration in the territory

at the confidentiality of the talks, and because we need to

start preparing opinion in Hong Kong for a realistic settlement.

3.

We have to steer a tight course between the realities of

our negotiating position with the Chinese and Hong Kong's wish,

strongly reinforced during the visit of EXCO Unofficials last week, that we should adopt a very tough negotiating line. I shall indeed be talking pretty toughly to the Chinese but will want to probe their position very carefully and retain some flexibility for the discussion of an agreement which is likely to take most of the time of the negotiators during this summer.

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