TNAG-1312-FCO40-1687-Future-of-Hong-Kong-views-and-involvement-of-Australia--Cana-1984 — Page 127

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CONFIDENTIAL

CONFIDENTIAL

FM OTTAWA 24225OZ JAN 84

TO IMMEDIATE FCO

TELEGRAM NUMBER 55 OF 24 JANUARY

AND TO IMMEDIATE PEKING

INFO PRIORITY TO HONG KONG

YOUR TELNO 17 PARA 3: FUTURE OF HONG KONG

TOP COPY

MKK040/6

RECEIVED IN REGISTRY

29 JAN 104

DESK OFFIC-R

INDEX

4

EGISTRY

tion Takin

CH812

1. HONG KONG WAS DISCUSSED IN A RESTRICTED SESSION BY ZHAO AND TRUDEAU. THE PRIVY COUNCIL OFFICE HAVE TOLD US THAT ZHAO GENERALLY REPEATED ALREADY STATED CHINESE POSITIONS. HE CONFIRMED THAT CHINA WOULD RESUME SOVEREIGNTY OVER ALL PARTS OF HONG KONG IN 1997, BUT THAT THE PRESENT SOCIAL SYSTEM, LAWS, FREE PORT STATUS, AND CURRENCY OPERATIONS WOULD BE ALLOWED TO CONTINUE. ALTHOUGH HONG KONG WOULD BECOME A SPECIAL ADMINISTRATIVE REGION IT WOULD CONTINUE TO HAVE A HIGH DEGREE OF AUTONOMY AND BE ADMINISTERED BY HONG KONG CHINESE: THERE WOULD BE NO INFUSION OF POLITICAL INPUT FROM THE PEOPLE'S REPUBLIC. THE CHINESE WOULD PROVIDE PROTECTION FOR FOREIGN INVESTMENT. HE SAID THAT LATER THIS YEAR CHINA WILL ANNOUNCE,WITH OR WITHOUT THE AGREEMENT OF THE UNITED KINGDOM, ITS FUTURE POLICY FOR HONG KONG, WHICH WOULD IN FUTURE BE CALLED HONG KONG - PEOPLE'S REPUBLIC OF CHINA (EXACTLY WHEN WAS NOT CLEAR):

2. IN RESPONSE TO A SPECIFIC QUESTION FROM TRUDEAU, ZHAO CONFIRMED THERE WOULD BE NO DIFFERENCE IN THE TREATMENT BETWEEN HONG KONG AND THE NEW TERRITORIES.

3. THE CANADIANS WERE SURPRISED, AS THEY UNDERSTOOD IT, TO BE TOLD BY ZHAO THAT DISCUSSIONS WERE NOT GOING ON WITH THE UNITED KINGDOM AS TO HOW BRITISH OFFICIALS COULD STAY IN HONG KONG AFTER 1997.

4.

THE OFFICIAL WHO PROVIDED THE DRIEFING HAD ALSO BEEN INVOLVED WITH THE VISIT BY FOREIGN MINISTER WU LAST SEPTEMBER. HE HAD THE

IMPRESSION THAT IN THE INTERVENING FOUR MONTHS THE CHINESE HAD BECOME CONCERNED AT THE UNCERTAINTY THAT HAD ARISEN FROM THE

Seria

(27)

CONFIDENTIAL

/CHINESE