CONFIDENTIAL
101210 MDHIAN 0908
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 3518
OF 21050OZ OCTOBER 89
INFO IMMEDIATE PEKING
INFO ROUTINE UKREP JLG HONG KONG
HONG KONG: MEETING BETWEEN DENG XIAOPING AND SIR Y K PAO
1. REPORTS ARE STARTING TO APPEAR IN THE HK PRESS THAT DENG XIAOPING
MET SIR Y K PAO IN LATE SEPTEMBER. DENG IS REPORTED TO HAVE WARNED THAT BEIJING WILL QUOTE INTERFERE UNQUOTE IN HONG KONG IF THE TERRITORY BECOMES A BASE FOR SUBVERSION.
2. WE HAVE OURSELVES NOW RECEIVED A FULLER ACCOUNT OF THIS MEETING FROM LORD KADOORIE WHO WAS BRIEFED ON IT BY XU JIATUN. THE MEETING TOOK PLACE ON 28 SEPTEMBER. DENG TOLD SIR Y K PAO THAT AFTER THE 4 JUNE INCIDENT SOME HONG KONG PEOPLE HAD SAID THAT AFTER 1997 NO CHINESE TROOPS SHOULD BE STATIONED IN HONG KONG AND MEANWHILE THE DEVELOPMENT OF THE REPRESENTATIVE GOVERNMENT SHOULD BE HASTENED. ALSO, THE SAR GOVERNMENT SHOULD BE GIVEN MORE POWER AND THE RIGHT TO INTERPRET THE BASIC LAW. SOME PEOPLE HAD ALSO INTERFERED IN POLITICAL AFFAIRS ON THE MAINLAND. DENG HAD SAID THAT WHEN SOVEREIGNTY RETURNED TO CHINA IN 1997 THEY WOULD ASSUME RESPONSIBILITY FOR ONLY TWO THINGS - DEFENCE AND FOREIGN AFFAIRS. DENG POINTED OUT THAT A NUMBER OF PEOPLE WANT HONG KONG TO BE A BASE FOR SUBVERTING THE SOCIALIST SYSTEM IN CHINA SO THE CHINESE GOVERNMENT MUST INTERVENE.
3. XU TOLD LORD KADOORIE THAT CHINA HAD RECENTLY NOTED THAT THE
BRITISH AND HONG KONG GOVERNMENTS' POSITION SEEMED TOUGH. WHEN SIR Y K PAO WAS IN BEIJING IT WAS POINTED OUT TO HIM THAT CHINA WOULD NOT BOW TO SUCH PRESSURE AND WOULD TAKE A HARDER LINE.
4. XU TOLD LORD KADOORIE THIS AS BACKGROUND TO THEIR CONVERSATION ON
THE YANG YANG INCIDENT. IT UNDERLINES THE POINT THAT THE MAIN AIM OF CHINA'S DECISION TO SUSPEND THE RETURN OF ILLEGAL IMMIGRANTS HAS
BEEN TO SEND A STRONG SIGNAL TO HONG KONG ON THE QUESTION OF SUBVERSION, RATHER THAN TO OBTAIN NEW SPECIFIC ASSURANCES ON THE TREATMENT OF TWO-WAY PERMIT HOLDERS.
5. DENG HAS EFFECTIVELY PICKED ON THE THREE MAIN AREAS IN THE BASIC
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