TNAG-2487-FCO40-3618-Future-relations-between-Hong-Kong-and-China-1992 — Page 84

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politics thereof. From the perspective of the vast bureaucratic

establishment of the Chinese state Hong Kong is neither strictly

a domestic nor a foreign affairs matter. It does not fall within

the administrative jurisdiction of the State's domestic

organizations and, despite it being negotiated with Britain, as

a territory technically claimed to be within Chinese sovereignty

involving Chinese compatriots, Hong Kong does not fall within the

purview of the Ministry of Foreign Affairs either. Moreover,

unlike Taiwan, Hong Kong has not occupied a prominent position

in the consciousness of China's leaders continuously since 1949.

It should also be recalled that Hong Kong was first raised as an

issue by the British and not by the Chinese. Before the British

raised it in 1979, the Chinese appeared content to leave matters

as they were. In fact there was no sign that in changing their

approach to Taiwan in December 1978 (as a consequence of the

United States changing its diplomatic recognition of the Chinese

state from Taipei to Beijing) that China's leaders gave any

thought to the Hong Kong question. But it was only early in the

following year when the British broached the question with them

(because the time limit on territory affected by the expiry of

the Lease in 1997 affected accountants, insurers and so on) that

it occurred to Deng Xiaoping and his colleagues that the Hong

Kong issue might be settled in line with the new approach, but

in advance of Taiwan.

Initially a small team under the leadership of Liao Chengzhi

(a prominent Beijing based politician who was well connected with

the overseas Chinese and the Japanese who was also well trusted