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From: Date:
CC:
PS/PUS
2 November 1992
PS/Mr Goodlad Sir J Coles
Mr Ricketts, HKD
LORD STIRLING:
1.
TRIP TO HONG KONG AND CHINA
Lord Stirling telephoned the PUS this morning to talk about a trip he is paying to Hong Kong, Shanghai and Peking beginning on 8 November. Lord Stirling said that he would be speaking to a business audience in Hong Kong, and was wondering how to play the question of the confidential exchange of letters. Many in the business community were now uncertain about the Governor's pragmatic approach towards relations with Peking. Reports from his contacts there suggested that there was sympathy in Hong Kong for the Chinese line, that a confidential agreement had been broken.
2. The PUS said that, whatever spin the Chinese were trying to put on the exchange of letters, HMG's view was that the Governor had been entirely within his rights to act as he did. It was typical of opinion in Hong Kong that a policy welcomed on its announcement should become unpopular within a short time. The Governor's approach had been discussed in detail with No 10 and the FCO, and the Governor's speech made with the full agreement of British Government. We had, frankly, expected to have a rough time with the Chinese over it, but believed we could weather the storm and get relations back to normal in time. The key message to the Chinese at this time was that we were not looking for a fight; that we stood by our commitments to the Chinese; that the Governor's moves had been a response to growing pressures in a fast-changing world; and that we were determined to continue business as usual with Peking.
3. Lord Stirling was grateful for his comments, and said that he would be careful, throughout his visit, to play carefully down the centre. He offered to call on the PUS on his return for a de-brief. The PUS welcomed the suggestion.
Tum Sams
Tim Simmons
PS/PUS
270 2142
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