TNAG-1882-FCO40-2673-Relations-between-Hong-Kong-and-China-Chinese-complaints-con-1989 — Page 46

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FM UKREP JLG HONG KONG

TO IMMEDIATE FCO

TELNO 248

OF 16090OZ NOVEMBER 89

AND TO IMMEDIATE PEKING

INFO ROUTINE HONG KONG

(Hoom file.

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нив ого 123

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MDHIAN 4805

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FCO TELNO 1947 TO WASHINGTON: INTERNATIONALISATION OF THE HONG KONG

QUESTION: PRESS LINE

1. COMPLAINTS ABOUT OUR ATTEMPTS TO QUOTE INTERNATIONALISE UNQUOTE THE HONG KONG QUESTION, FOR EXAMPLE BY RAISING IT AT CHOGM AND BY THE GOVERNOR DISCUSSING IT ON HIS VISIT TO THE UNITED STATES, HAVE NOW BECOME AN ESTABLISHED PART OF THE CHINESE LITANY, OF WHICH THE PRESS HERE ARE WELL AWARE. THEY ARE LIKELY TO REPEAT THESE COMPLAINTS AT JLG XIV NEXT MONTH. WE AND CHRIS OSBORNE ARE COMING UNDER SOME PRESSURE HERE FROM THE PRESS TO RESPOND TO SUCH CHARGES.

THE LINE TO TAKE IN TUR WAS DESIGNED FOR THE SPECIFIC ISSUE OF

CHOGM. I FEEL WE NOW NEED A MORE GENERAL LINE TO TAKE. I SHOULD BE GRATEFUL THEREFORE FOR YOUR EARLY COMMENTS ON THE FOLLOWING LINE. WHICH HAS BEEN CLEARED WITH HKG, AND WHICH IS INTENDED AS A QUERY TO BE DRAWN ON AS APPROPRIATE. OF COURSE WE WILL NEED TO WORK ON A

SLIGHTLY SHARPER RESPONSE FOR USE AT JLG XIV.

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2. JOINT DECLARATION (JD) IS A BILATERAL AGREEMENT BETWEEN BRITAIN

AND CHINA. IT IS THEREFORE OUR TWO GOVERNMENTS' JOINT AND UNDISPUTED RESPONSIBILITY TO IMPLEMENT THAT AGREEMENT AND PREPARE FOR THE SMOOTH TRANSFER OF SOVEREIGNTY IN 1997. WE HAVE NEVER SOUGHT TO

INVOLVE OTHER COUNTRIES IN THIS PROCESS. ACCORDINGLY CANNOT UNDERSTAND BASIS OF THE CHINESE COMPLAINT.

PROSPERITY OF THE FUTURE SAR DEPENDS TO A LARGE EXTENT ON MAINTAINING INTERNATIONAL SUPPORT FOR AND CONFIDENCE IN HONG KONG

DURING AND BEYOND THE PERIOD OF TRANSITION. THE JD ITSELF MAKES CLEAR THAT THE SAR SHOULD REMAIN AN INTERNATIONAL FINANCIAL CENTRE.

THIS SUPPORT VITAL FOR HONG KONG IF IT IS TO MAINTAIN STATUS AS TRULY INTERNATIONAL CITY AND REGIONAL CENTRE (EG LARGEST INTERNATIONAL CONTAINER PORT, 11TH IN LEAGUE OF WORLD'S TRADING ECONOMIES, 136 OVERSEAS INCORPORATED BANKS).

FOR THESE REASONS BOTH BRITAIN AND CHINA VIGOROUSLY PROMOTED JD

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