TNAG-1318-FCO40-1722-Future-of-Hong-Kong-views-and-involvement-of-the-European-Co-1984 — Page 5

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4.

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Kabulla, Rheinische Post, compares Hong Kong with

Mrs Thatcher's other colonial problems. He notes the change in Mrs Thatcher's line over the legal position once it was realised that the Chinese line would not change and the future of Hong Kong needed to be saved. The British commercial position in China vis a vis the Americans, Germans and Japanese would also be strengthened by the conclusion of the Agreement and the removal of this political thorn from the flesh. He believes that Mrs Thatcher should see this Agreement as an example of how overriding interests can dictate political action and suggests that the principle could be applied to Gibraltar and the Falklands. The British argument that the population's wishes are paramount no longer carries weight. A generous settlement for Gibraltar and the Falklands would not only prove the Prime Minister's skill as a statesman, but also clear up the remains of British colonial imperialism and remove trouble spots.

5. Finally, as a postscript, you might like to be aware that we have had one, repeat one, letter from the German public about the Agreement. You will be pleased to know that 100% of our sample (the Dresdner Bank writing to our Consul-General in Frankfurt) are in favour of the Agreement. They applaud the detail of the Agreement and the degree of autonomy achieved and say their confidence in the Colony in the foreseeable future remains undiminished. They foresee increased German economic and financial involvement in Hong Kong.

cc:

Chanceries:

Peking Hong Kong

D Lamont Esq FID, FCO

sincerely

Ilyhen

DE Lyscom

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