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TO IMMEDIATE GOVERNOR HONG KONG TEL NO 154 OF 9 FEBRUARY 1973 INFO
PRIORITY PEKING

PERSONAL FOR GOVERNOR,

YOUR TELEGRAMS NOS 148 AND 156: CHINESE REPRESENTATION IN HONG KONG.

1. IF PRESSURE BUILDS UP ON THIS STORY, IT WILL BE IMPOSSIBLE TO
MAINTAIN THE LINE CONTAINED IN YOUR PARAGRAPH 2. IT HAS THEREFORE BEEN
AGREED, SUBJECT TO YOUR VIEWS, THAT IN RESPONSE TO FURTHER QUESTIONING
NEWS DEPARTMENT AND GOVERNMENT INFORMATION SERVICES SHOULD TAKE THE
FOLLOWING LINE AS APPROPRIATE:

ON THE RECORD: IT IS NO SECRET THAT THE QUESTION OF CHINESE

REPRESENTATION IN HONG KONG HAS BEEN THE SUBJECT OF EXCHANGES

BETWEEN THE CHINESE AND BRITISH GOVERNMENTS FROM TIME TO TIME,

THERE MAY VERY WELL BE FURTHER EXCHANGES IN THE FUTURE.

BACKGROUND 1

A) THE CHINESE GOVERNMENT FIRST RAISED THE QUESTION OF OFFICIAL
REPRESENTATION IN HONG KONG IN 1956( AS WAS MENTIONED IN AN ARTICLE IN
CHINA QUARTERLY IN SEPTEMBER 1972).

B) SEVERAL OFFICIAL CHINESE AGENCIES HAVE OFFICES IN HONG KONG AND HAVE
A WORKING RELATIONSHIP WITH THE GOVERNMENT, EG THE NEW CHINA NEWS
AGENCY, THE BANK OF CHINA, THE CHINA INTERNATIONAL TRAVEL SERVICE (WHICH
ISSUES VISAS) AND THE CHINESE STATE SHIPPING CORPORATION,

2. WE REALISE THAT THE REFERENCE TO FURTHER EXCHANGES IN THE FUT- URE''
MAY WELL LEAD TO FURTHER QUESTIONING, HOWEVER, WE MUST HAVE A RESPONSE
TO THE QUESTION 'WHAT IS YOUR ATTITUDE TO THE CHINESE

PROPOSAL FOR IMPROVED REPRESENTATION?''

3. WE SHALL SHORTLY BE TELEGRAPHING AGAIN ON THE SUBSTANCE.

DOUGLAS-HOME

FILES

FED

HKI OD

NEWS DEPT 'SIR E NORRIS MR WILFORD

SECRET

187

PRIORITY

CYPHER/CAT A

FMM HONG KONG 190428Z

SECRET

SECRET

TO PRIORITY FCO TELNO 164 OF 18TH FEBRUARY, 1973. INFO ROUTINE

PEKING.

YOUR TELNO 154: RESIDENCE FOR A CHINESE REPRESENTATIVE IN HONG KONG,

I AGREE, BUT SUGGEST ONLY USE LAST SENTENCE OF SECOND PARA,

IF PRESSED AND IN ANSWER TO QUESTION.

2. BUT THE STORY SEEMS TO BE DEAD. IT RELATED TO THE TWO

FORMER CHINESE MARITIME CUSTOMS HOUSES AT MAGAZINE CAP. SINCE THE

DEPARTURE OF THE LAST COMMISSIONER IN 1950 THEY HAVE OFTEN BEEN

VACANT AND GENERALLY LITTLE USED AND WERE BECOMING DILAPIDATED.

ABOUT 15 MONTHS AGO RENOVATION STARTED AND IS NOW MEARING COMPLETION

WE ARE INCLINED TO CONNECT THIS (A) WITH THE IMPENDING DEMOLITION AND
REDEVELOPMENT OF FELIX VILLAS, WHERE SOME OF THE COMMERCIAL HIERARCHY
LIVED AND PREVIOUSLY TRANSIENTS WERE HOUSED,

AND WHICH WILL NOT BE AVAILABLE FOR A YEAR OR TWO: (D) WITH THE
INCREASING NUMBERAND SENIORITY OF CPGDELEGATIONS WHICH VISIT

HONG KONG: (C) WITH PRUDENT MANAGEMENT OF THESE VERY FIND PROPERTIES.

WHICH ARE STILL UNDER THE CONTROL OF THE COMMERCIAL SECTION OF THELOCAL

HIERARCHY.

3. I THINK THE DECISION TO RENOVATE PROBABLY PREDATED THAT TO PRESS FOR
REPRESENTATION AND IS UNCONNECTED WITH IT. ALL THE SAME IF THEY HAD A
FORMAL REPRESENTATIVE HERE, I SUPPOSE IT IS POSSIBLE HE MIGHT USE ONE OF
THESE HOUSES INSPITE OF THEIR BURGEOIS SURROUNDINGS AND HISTORICAL
CONNECTION WITH UNEQUAL TREATIES.

MACLEHOSE

FILES

FED

HKIOD

NEWS D

SIR E NORRIS

MR WILFORD

[REPEATED AS REQUESTED]

SECRET

SECRET.

Reference...

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Please destroy the earlier version of this minute

which was sent to you yesterday. This revised version

takes into account the views of Hong Kong and Indian

Ocean Department.

8 February 1973

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Mr Leahy

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CHINESE REPRESENTATION IN HONG KONG

Hong Kong telegram no 148 reports that two non-communist

newspapers have stated that China intends to station an official

in Hong Kong to deal with foreign affairs affecting Britain, China and

Hong Kong. Because the Hong Kong Government Information Services were

asked whether an approach had been made to the Hong Kong Government,

they have felt able to reply, on the record, "No". This is, however,

a disingenuous line and one which cannot be held for very long; we

must therefore have a form of words ready for use both in Hong Kong

and here should the story develop, as it seems likely to do.

2.

Ministers have yet to decide what the Secretary of State should

say to Chi P'eng-fei about the Chinese proposal for the establishment

of an official representative in Hong Kong. (Far Eastern Department

are submitting separately on this.) It is therefore important

whatever we say to correspondents is neutral. I therefore suggest

that we employ the following line in answer to queations:

On the record:

It is no secret that the question of Chinese

representation in long Kong has been the subject

of exchanges between the Chinese and British

Governments from time to time. There may very well be

further exchanges in the future.

Background:

(a) The Chinese Government first raised the

question of improved representation in Hong Kong in

1956 (as was mentioned in an article in China

Quarterly in September 1972).

3.

(b)

Several official Chinese agencies have offices

in Hong Kong and have a working relationship with the

government, e.g. the Now China News Agency, the Bank of

China, the China International Travel Service (which issues

visas) and the Chinese state shipping corporation.

Far Eastern Department and Hong Kong and Indian Ocean

Department agree.

We shall need to telegraph the agreed line

to liong Kong whether or not they get further enquiries.

7 February 1973

Jole weait

J G B Weait

News Department

CC

Sir E Norris

Mr Evans FED

Mr Stuart UK & IOD

Mr Leahy

Private Secretary

SECRET.

CHINESE REPRESENTATION IN HONG KONG

15

12/21/1

26

16A

Hong Kong telegram no 148 reports that two non-communist newspapers have
stated that China intends to station an official in Hong Kong to deal
with foreign affairs affecting Britain, China and Hong Kong. Because the
Hong Kong Government Information Services were asked whether an approach
had been made to the Hong Kong Government, they have felt able to reply,
on the record, "No". This is, however a disingenuous line and one which
cannot be held for very long; we must therefore have a form of words
ready for use both in Hong Kong and here should the story develop, as it
seems likely to do.

2.

Ministers have yet to decide what the Secretary of State should say to
Chi P'eng-fei about the Chinese proposal for the establishment of an
official representative in Hong Kong. (Far Eastern Department are
submitting separately on this.) It is therefore important whatever we
say to correspondents is neutral. I therefore suggest that we employ the
following line in answer to questions:

Mor Hervey

Yes. A Mvise has circulated

On the record:

It is no secret that the question of Chinese

representation in Hong Kong has been the subject

of exchanges between the Chinese and British

Governments from time to time. These exchanges

are continuing.

Background:

(a) The Chinese Government first raised the question of improved
representation in Hong Kong in 1956 (as was mentioned in an article in
China

Quarterly in September 1972).

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(b) Several official Chinese agencies have offices in Hong Kong and have
a working relationship with the government, e.g. the New China News
Agency, the Bank of China, the China International Travel Service (which

issues visas) and the Chinese state shipping corporation.

Far Eastern Department agree. We shall need to telegraph

the agreed line to Hong Kong whether or not they get further

enquiries.

3.

7 February 1973

co

Sir E Norris

Mr Evans FED Mr Stewart

JGB Weait News Department

IMMEDIATE

CYPHER/CAT A

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CONFIDENTIAL

To

FM HONG KONG Ø80858Z

CONFIDENTIAL

TO IMMEDIATE F C O TELNO 156 OF 8TH FEBRUARY, 1973. INFO PRIORITY

PEKING.

一回

MY TELEGRAM NUMBER 148: CHINESE REPRESENTATION IN HONG KONG.

TODAY'S SOUTH CHINA MORNING POST PICKING UP STORY

REPORTED IN MY REFERENCE TELEGRAM, STATES THAT ''LEFT-WING SOURCES''

HAD ''FLATLY DISMISSED AS NONSENSE' SUGGESTIONS THAT THE HOUSE

IN QUESTION MIGHT BE USED AS THE RESIDENCE OF A CHINESE

FOREIGN MINISTRY REPRESENTATIVE.

MACLEHOSE

FILES

'REPEATED AS REQUESTED

FO

HKIOD

MR WILFORD

SIR E. NORRIS

CONFIDENTIAL

+

MADIATE

CYPHER/CAT A

FM HONG KONG 070750Z

SECRET

SECRET

1973

TO IMMEDIATE FCO TELNO 148 OF 7 FEBRUARY/INFO PRIORITY PEKING.

MY DESPATCH NUMBER 14 OF 11 JANUARY: CHINESE REPRESENTATION IN

HONG KONG.

TWO NON-COMMUNIST LOCAL NEWSPAPERS, SING TAO JIH PAO AND FAI PAO,
REPORTED PROMINENTLY YESTERDAY (TUESDAY) THAT CHINA INTENDS

TO STATION AN OFFICIAL IN HONG KONG TO DEAL WITH FOREIGN AFFAIRS

AFFECTING BRITAIN, CHINA AND HONG KONG, BOTH PAPERS CARRIED PHOTOGRAPHS
OF A HOUSE IN MAGAZINE GAP WHICH, THEY SAY, WILL BE USED

BY THE NEW REPRESENTATIVE.

+

2. AS A RSULT OF THESE REPORTS THE GOVERNMENT INFORMATION SERVICES HAVE
RECEIVED QUESTIONS FROM ONE OTHER NEWSPAPER, ASKING FOR CONFIRMATION. IN
REPLY TO THE QUESTION: QUOTE HAS THE CHINESE GOVERNMENT APPLIED TO THE
HONG KONG GOVERNMENT TO ESTABLISH A

FOREIGN AFFAIRS OFFICE IN HONG KONG? UNQUOTE THE GIS HAVE SAID

QUOTE NO UNQUOTE.

3. IF THERE ARE FURTHER QUESTIONS REFERRING TO DISCUSSIONS BETWEEN

PEKING AND LONDON ON THIS SUBJECT WE WILL CONSULT YOU BEFORE

REPLYING.

MACLEHOSE

FILES

FED HKI OD

MR WILFORD

4

SECRET

(Submission

below)

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Mr Evans

SECRET

Reference

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Sis Evic Noins!

(14

CHINESE REPRESENTATION IN HONG KONG / Enici oda.

1. Sir Murray MacLehose's underlying objection to your original draft
was that, by comparing it with what has been said to the Chinese in the
past, they might conclude that it was only a wayside station and that
next time they pressed we would retreat a little more to the point where
we would agree to a repre- sentative within the foreseeable future. He
therefore suggested the deletion of the last 3 sentences of your draft.
But we agreed that this might have the opposite effect to that intended.

Wha

I

2. de spoke to Sir Eris Norris the other day, wondered whether the
Governor's point might be met by leaving your last paragraph more or
less as it was but by inserting in the body of the Speaking Note a
passage to make it clear that this was a definitive and not a passing
judgement. At the same time we could make it plain that our judgement
that the appointment of a representative would harm confidence, was not
founded on distrust of the Chinese but on the logic of the situation and
the probable reaction to such an appointment both inside and outside
Hong Kong.

3. You are the expert on the reactions of the Chinese and will know
better than I whether it would be helpful to spell this last point out.
But if we could insert something on the lines of the attached passage,
between the paragraph ending "... disturb the situation there" and the
one beginning "I would therefore ask you...

..", this would make the point and meet Sir Murray MacLehose's
preoccupation while at the same time making it possible to retain the
last paragraph of your original draft in the formal Speaking Note.

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6 February 1973

A C Stuart

Hong Kong & Indian Ocean Department

But,

1. It would certainly be better in logic to add a passage of the kind
suggested by Mr Stuart. politically speaking, I just do not think it is
possible for the Secretary of State to tell Chi P'eng-fei that the
appointment of an official Chinese representative would undermine the
confidence on which the stability of Hong Kong depends.

I should therefore prefer this point to be made by implication in
whatever the Secretary of State may say on the record.

/2.

DO897261 230443 300M 571 ON 160A

SECRET

4

SECRET

2. As you will see, I have not dealt in my submission with the question
of whether the subject should be put to DOP. My own view on this is that
it ought to go to DOP if the Secretary of State decides in favour of any
course other than courses (a), (b) and (f).

3. I have just seen Hong Kong telegram No 148 (of which Í attach an
advance copy). I am consulting News Department urgently about the line
which they might take if they receive enquiries. The answer given by the
Government Information Services in Hong Kong is strictly speaking true;
but it contains an element of suggestio falsi. We shall need to watch
the publicity aspect with great care during the period between now and
the date of Chi P'eng-fei's arrival in London.

7 February 1973

R.M.Erons

RM Evans

Far Eastern Department

RE.

9/2

SECRET

મ.

00 FCO

PP I NG

GPS 100

CYPHER/CAT A

FM HONG KONG £767532

SECRET

SCOTET

ADVANCE COPY

IMMEDIATE

Mr Wilfred And FED Hal HK & I Y

TO IMMEDIATE FCO TELNO 148 OF 7 FEBRUARY INFO PRIORITY PEKING.

MY DESPATCH NUMBER 14 OF 11 JANUARY: CHINESE REPRESENTATION IN HONG KONG

TWO NON-COMMUNIST LOCAL NEWSPAPERS, SING TAO JIH PAO AND FAI PAO,
REPORTED PROMINENTLY YESTERDAY (TUESDAY) THAT CHINA INTENDS TQ STATION
AN OFFICIAL IN HONG KONG TO DEAL WITH FOREIGN AFFAIRS AFFECTING BRITAIN,
CHINA AND HONG KONG, BOTH PAPERS CARRIED PHOTOGRAPHS OF A HOUSE IN
MAGAZINE GAP WHICH, THEY GAY, WILL BE USED

BY THE NEW REPRESENTATIVE.

2. AS 'A RSULT OF THESE REPORTS THE COVERNMENT INFORMATION SERVICES HAVE
RECEIVED QUESTIONS FROM ONE OTHER NEWSPAPER, ASKING FOR CONFIRMATION, IN
REPLY TO THE QUESTION: QUOTE HAS THE CHINESE GOVERNMENT APPLIED TO THE
HONG KONG COVERNMENT TO ESTABLISH A FOREIGN AFFAIRS OFFICE IN HONG KONG?
UNQUOTE THE GIS HAVE SAID QUOTE NO DNQUOTE.

3. IF THERE ARE FURTHER QUESTIONS REFERRING TO DISCUSSIONS BETWEEN
PEKING AND LONDON ON THIS SUBJECT WE WILL CONSULT YOU BEFORE REPLYING.

MACLEHOSE

KNNN

SENT AT 07/07552 RD

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Sir Eric Norris

Mr. Evanz (PED)

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CHINESE REPRESENTATION IN HONG KONG

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1. The Chinese Foreign Minister and the Chinese Prime Minister

both broached this subject with the Secretary of State during

his visit to Peking last autumn. On 1 November, the Secretary

of State told Chou Eh-lai that he would like to think about the

matter and that he would get in touch with Chi P'eng-fei in due

course. Chi Peng-fei is bound to bring the subject up during his visit
to this country from 22 February to 25 February. should the Secretary of
State respond?

Background

2.

How

The Chinese have proposed that a representative of the

Ministry of Foreign Affairs in Peking should be established in

Hong Kong. They first made this proposal in 1956.

It was

rejected by Mr Selwyn Lloyd in 1958. Chou En-lai brought it up

again with Mr Denson in February 1971. It has since been

pursued by Chang Wen-chin with Sir John Addis (in March 1972);

by Ch'iao Kuan-hua with Mr Royle (in May 1972); and by Chi

A, B P'eng-fei and Chou in-lai with the Secretary of State (in October

and November 1972). The history of the case is set out in

detail in paragraphs 2 to 6 of Sir John Addis's despatch of

18 December 1972.

Argument

3. In May 1972, Mr koyle told Ch'iao Kuan-hua that we could

not accept the Chinese proposal. The Secretary of State maintained this
refusal in the autumn (though he undertook to think the matter over).
The course which will be open to the

1

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Mr Ogres

SECRET

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13

Secretary of State when he meets Chi P'eng-fei at the end of this month
are:

(a)

(b)

To maintain our refusal to consider the Chinese proposal;

To say that we have given very careful consideration

to the Chinese proposal, but that we do not think the time is ripe for
the Chinese to pursue it;

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(c)

(a)

(e)

(1)

L

To say that we might be prepared to consider the Chinese proposal on
condition that the Chinese would be prepared to designate their official
representative as a Consul General;

To say that we are prepared to explore the implications of the Chinese
proposal in confidential bilateral discussions;

To accept the Chinese proposal in principle as it stands;

and

To say that we need further time to consider the Chinese

proposal.

The course favoured by Sir Murray MacLehose is course

(a). His essential point is that he sees "the seeds of conflict and
confrontation" in acceptance of the Chinese proposal (paragraph 13 (c)
of his despatch of 11 January 1973). Sir John Addis favours course (d).
The nub of his argument is that rejection of the Chinese proposal would
entail "a steady deterioration in bilateral relations on all fronts,
political as well as commercial" (paragraph 7 of his despatch of

18 December). The principal argument for and against each of the courses
are set out in a paper recently prepared by the Department.

A

Z

- 2 -

SECRET

15.

F

G,

, H

H

H

H

5.

In discussion with you, Mr Royle agreed that we should recommend course
(b) to the Secretary of State. With this in

mind, we drafted a form of words for the Secretary of State to

use in speaking to Chi P'eng-fei. We put this form of words to Sir
Murray MacLehose and Sir John Addis, inviting their comments (FCO
telegram No 116 to Hong Kong). It is clear from their replies that Sir
Murray MacLehose still favours course (a) (Hong Kong telegrams No 13 and
No 142) and Sir John Addis favours course (d), perhaps to some extent
modified (Peking

telegram No 109). These attitudes are not reconcilable.

6. I believe that our purpose should be to get the Chinese to desist
from pressing their proposal for a period of years in the manner which
is least likely to harm Anglo-Chinese relations. I believe that course
(b) is the course which gives us the best chance of achieving this
purpose. It would be less likely to damage Anglo-Chinese relations than
course (a); and I do not believe (pace Sir Murray MacLehose) that it
need

entail us in a more or less continuing dialogue with the Chinese (Hong
Kong telegram No 142, paragraph 2). In order, however, to reduce the
risk of encouraging the Chinese to

return to the charge, I have substituted fresh language for

the four final sentences in the form of words which we

telegraphed to Sir Murray MacLehose and Sir John Addis. As

you will see, I have made the concluding passage shorter; to compensate,
however, I have added two sentences for the

Secretary of State to use if pressed. I have also adopted the amendment
suggested by Sir John Addis (Peking telegram No 109,

paragraph 3).

-3-

SECRET

17.

+

1

+

+

7.

There are also two tactical problems:

(a)

Ought the Secretary of State to bring up the subject

or to leave the running to Chi Peng-fei;

(b)

Ought the Secretary of State to give Chi P'eng-fei

anything in writing.

So far as (a) is concerned, it might be better for the

Secretary of State to broach the subject himself. He has under-

taken to get in touch with Chi P'eng-fei; and it is certain that

Chi P'eng-fei will bring the subject up if he does not do this

himself. As regards (b), there is a strong case for the Secretary of
State to give Chi P'eng-fei something in writing.

The Chinese set great store by exact forms of words; and there

is a danger that the nuances of what the Secretary of State has

to say will be lost during interpretation.

Recommendation

B.

Against this background, my recommendations are that:

(a) The Secretary of State should himself broach the subject

(b)

(a)

with Chi P'eng-fei;

He should speak in the terms of the form of words

attached to this submission; and

He should give Chi P'eng-fei a copy of this form of words.

9. Hong Kong and Indian Ocean Department concur.

6 February 1973

CC

Mr Logan✔

Sir Duncan Watson (with attachments)

Mr Stuart Mr Hervey

4

GLORAT

R M Evans

Far Eastern Department

H

·

:

NOTHING TO BE WRITTEN IN THIS MARGIN

"I discussed this subject with you and with the

Prime Minister when I visited China last autumn. I

told the Prime Minister on 1 November that I would

like to think about the matter and I would get in

touch with you in due course.

"The positions of our two Governments on the

status of Hong Kong are necessarily differant.

But,

as I see it, we have two important interests in

common. These are to preserve the stability and prosperity of Hong Kong
and to preserve the relation-

ship which has developed between our two countries.

So far as Hong Kong is concerned, stability and

prosperity depend on confidence. Confidence is a

tender plant: it grows only slowly, but can wilt very

quickly. If, as I belive, we share an interest in

the stability and prosperity of Hong Kong, it follows that we also share
an interest in the preservation of

confidence there.

"As far as relations between Britain and China

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