TNAG-1999-FCO40-2846-Meeting-between-Douglas-Hurd--Secretary-of-State-for-Foreign-1990 — Page 7

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Mr Jaul, HR

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10 JUL 1990

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Ms Marsden

Ms Major on 217 Mr Morrm 217 Mr Steak 2/9

Secretary of State's Lunch with Sir Y K Pao

The Secretary of State had lunch today with Sir Y K Pao. There was not a great deal of substance to the conversation.

Sir Y K Pao, as predicted in the brief, gave an account of his recent dinner with Deng Xiaoping. Sir Y K Pao's son in law, Edgar Cheng, had also been present at the lunch and had judged that Deng was in good health. He had walked without help; had stuck to his resolution to give up smoking; and drank only a little wine.

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Deng's main message had been on the need for stability in China. China was not Eastern Europe. If there was an upset in China the consequent emigration would swamp Hong Kong and other countries in the region. Deng had said that there would be change in China, but this would take time. Nothing dramatic was said about Hong Kong.

Sir Y K Pao commented (as Hong Kong telno 1927 reported) that Zhou Nan had been invited to the dinner with Deng at the last moment. He had sat next to Deng and had given the impression that such an occasion with Deng was a new experience. He had clearly been very pleased to be at the dinner, and had taken down every word which Deng spoke.

There was a certain amount of gossip at the dinner with Deng. Deng had said that Jiang Zemin had so far done better than Deng had expected. There was also some discussion of the background to Xu Jiatun's sudden disappearance to the United States. Sir Y K Pao thought that Xu had expressed the wish to retire to live at Shen Zhen on the Hong Kong side of the border. This was too much for the Chinese, and they had refused permission. Xu had therefore left, disgruntled, for the United States. Sir Y K Pao thought that Xu would return

to China eventually.

Sir Y K Pao confirmed that the idea of a Deng library in Britain and of a university in China named after the Prime Minister was dormant. It was up to us to say if and when we wanted to resurrect it.

CONFIDENTIAL

/Finally,