TNAG-1312-FCO40-1687-Future-of-Hong-Kong-views-and-involvement-of-Australia--Cana-1984 — Page 103

FAGF FIVE PERØØ88 CONFD

INVESTORS PROTECTED UNQUOTE,ALL GUARANTEED BY SPECIAL LAW UNDER

ARTICLE OF PRC CONSTITUTION REGARDING SPECIAL ADMINISTRATIVE

REGIONS).IN TALKS WITH PM,ZHAO ALSO CONFIRMED THAT BY END OF 1984

CFINA WOULD ANNOUNCE DEFINITIVELY WHAT FUTURE STATUS CF HKCNG WOULD

BE, ALONG LINES NEGOTIATED WITH UK IF POSSIBLE, BUT UNILATERALLY IF

NEGOTIATIONS FAILED. IN PARL ADDRESS,ZHAO IN FACT EXPRESSED

CONFIDENCE THAT NEGOTIATIONS WOULD SUCCEED; WHEN QUESTIONED AT PRESS

CONF ON THIS OPTIMISM, PREMIER REFUSED TO GIVE SPECIFIC REASONS, BUT

STATED HE HAD CONCRETE GRCUNDS BASED ON PROGRESS DURING LAST PHASE

OF SINO-UK TALKS.ANOTHER PRESS QUESTION PROBED WHETHER HKONG AND

TAIWAN SITUATIONS WERE LINKFD; ZHAO AGREED THEY WERE, ADDING THAT ALL

POLICIES APPLIED TO HKONG WOULD BE APPLIED TO TAIWAN AND THEN SOME,

AS PART OF DRIVE FOR EARLY PEACEFUL REUNIFICATION OF BOTH REGIONS

WITH PRC.

6.KOREA.THIS QUESTION WAS DISCUSSED DURING 17JAN EXPANDED MTGS AND

ALSO WE UNDERSTAND OVER DINNER THAT EVENING.ASKED TO DESCRIBE PKC

POSITION,ZHAO EMPHASIZED THAT CHINA SHARED OTHER COUNTRIES DESIRE

FOR PEACE AND STABILITY ON KOREAN PENINSULA,ADDING THAT IN HIS VIEW

DPRK WOULD ALSO AVOID CONFRONTATION FOR FORESEEABLE FUTURE IN

ORDER TO FREE RESOURCES FOR ECONOMIC DEVELOPMENT.HE CONFIRMED THAT

PRC HAD DISCUSSED KOR/N PROPOSAL FOR TRIPARTITE TALKS (KOR/N, USA,

KOR/S)WITH PRES REAGAN NOTING THAT WHILE USA HAD IN FACT CRIGINATED

•

TRIPARTITF IDEA,WITH PRC ACTING AS MESSENGER TO PYONGYANG, THERE WAS

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