FCO 21/1136 Representation of China in Hong Kong

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(Part A.)

TITLE: REPRESENTATION OF CHINA IN HONG KONG

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SECRET

CLOSED UNTIL

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Registry Address

Room No. ...271..

King Charles Street.

YEAR STAMP

1973

REFER TO

PRIORITY

CONFIDENTIAL

TOP CL.

Jue

CYPHER/CAT A

GPS 80

FM HONG KONG 1609252

CONFIDENTIAL

1973

TO PRIORITY FCO TELNO 539 OF 16 MAY/INFO PEKING.

YOUR TELEGRAM 478: CHINESE REPRESENTATION IN HONG KONG.

I SUGGEST THAT THE TELEGRAM TO SINCLAIR BE AMENDED BY THE DELETION

OF THE PHRASE QUOTE TAKING INTO ACCOUNT NOT ONLY FACTORS OF PARTICU-

LAR RELEVANCE TO HONG KONG, BUT ALSO THOSE OF MORE GENERAL IMPORTANCE AFFECTING SINO/BRITISH RELATIONS IN THEIR FULLEST SENSE UNQUOTE.

2. THE INCLUSION OF THE ABOVE PHRASE COULD ENCOURAGE FEARS ABOUT

THE ASPECT THAT MOST ALARMS PEOPLE HERE. THIS IS THAT THE FUTURE OF

HONG KONG MIGHT BE SACRIFICED TO SERVE U.K. IMMEDIATE COMMERCIAL

INTERESTS. IF YOU AGREE WITH ITS DELETION, WE WILL PASS AMENDED TELEGRAM TO SINCLAIR.

MACLEHOSE

FILES

FED

HKIOD

NEWS D

P/S MR ROYLE MR WILFORD SIR E NORRIS SIR D WATSON

CONFIDENTIAL

Reply sent

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PRIORITY CYPHER/CAT A

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TU PRIORITY GOVERLOR HONG KONG TELEGRAM NUMBER 478 OF 15 MAY 1973

INFO PEKING.

MY TELEGRAM NUMBER 417: CHINESE REPRESENTATION IN HONG KONG.

KEVIN SINCLAIR HAS SENT ANOTHER TELEGRAM TO MR. ROYLE, AS

FOLLOWS:-

''MANY THANKS YOUR REPLY ON CHINESE LIAISON OFFICE. WOULD GREATLY

APPRECIATE FULL STATEMENT FROM YOU AFTER REPEAT AFTER THE REPLY

TO BE GIVEN IN THE HOUSE OF LORDS ON MAY 9. PLEASE CABLE

STATEMENT AFTER GOVERNMENT SPOKESMAN REPLIES TO LORD BROCKWAY'S

QUESTION OF MAY 9.

REGARDS SINCLAIR".

IF YOU AGREE WITH THE WORDING, PLEASE PASS THE FOLLOWING REPLY

TO SINCLAIR FROM MR. ROYLE:~

ÁS LADY TWEEDSMUIR TOLD THE HOUSE OF LORDS ON 9 MAY THE CHINESE

GOVERNMENT HAS PROPOSED THAT A REPRESENTATIVE OF THEIR MINISTRY OF FOREIGN AFFAIRS SHOULD BE ESTABLISHED IN HONG KONG. THIS IS

A PROPOSITION WHICH WAS FIRST RAISED IN 1956, REJECTED BY H.M.G. IN 1958 AND WAS RAISED AGAIN BY THE CHINESE GOVERNMENT FOLLOWING ESTABLISHMENT OF RELATIONS AT THE LEVEL OF AMBASSADOR LAST YEAR. AS A RESIDENT OF HONG KONG YOU WILL KNOW YOURSELF THAT THE PROPOSAL WOULD GIVE RISE TO CERTAIN PROBLEMS AND FOR THIS REASON IT IS MOST IMPORTANT THAT IT SHOULD BE CAREFULLY AND COMPREHENSIVELY STUDIED, TAKING INTO ACCOUNT NOT ONLY FACTORS OF PARTICULAR RELEVANCE TO HONG KONG, BUT ALSO THOSE OF MORE GENERAL IMPORTANCE

AFFECTING SINO/BRITISH RELATIONS IN THEIR FULLEST SENSE.('OUR STUDY IS NOT YET COMPLETED, AND IT WOULD BE WRONG FOR ME TO FORECAST ITS LIKELY OUTCOME, I AM SURE YOU WILL UNDERSTAND,

KINDEST REGARDS,

ANTHONY ROYLE'.

DOUGLAS-HOME

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NEWS D

FS/MR ROYLE

MR VILFORD SIR E NORRIS SIR D WATSON

RESTRICTED

CONFIDENTIAL

Mingyenes

Mr Evans

ni Wilford

Enter

CHINESE OFFICIAL REPRESENTATION IN HONG KONG

"ADA

Mr Kevin Sinclair, the Daily Express correspondent in Hong Kong, has sent a further telegram to Mr Royle, to follow up his earlier exchange. Mr Sinclair was the author of the front page article in the South China Morning Post of 26 April reported in Hong Kong telegram no. 445.

2. Mr Guest has minuted that in replying to Mr Sinclair's request, Mr Royle naturally feels he cannot go any further than Lady Tweedsmuir in her reply to Lord Brockway's Parliamentary Question on 9 May.

3. I submit a self-explanatory draft telegram. HKIOD and News Department concur.

10 May 1973

M. Wilford M. Evans.

Since

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H L1 Davies

Far Eastern Department

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10 may, 1973.

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ANTHONY ROYLE HOUSE OF COMMONS

LONDON

MANY THANKS YOUR REPLY ON CHINESE LIASON OFFICE STOP WOULD

GREATLY APPRECIATE FULL STATEMENT FROM YOU AFTER REPEAT

AFTER THE REPLY

TO BE GIVEN IN THE HOUSE OF LORDS ON MAY 9 STOP PLEASE CABLE

STATEMENT AFTER GOVERNMENT SPOKEMEN REPLIES TO LORD

BROCKWAY ON MAY 9 STOP REGARDS

SINCLAIR PORTSCRIPT HONGKONG

COL

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TO PRIORITY GOVERNOR HONG KONG TELHO 417 OF 30 APRIL INFO PRIORITY PEKING

نظام اينكم

YOUR TELEGRAM NOS 444 AND 445: CHINESE REPRESENTATION IN HO:IG

KONG.

(FE)

1. MR ROYLE HAS RECEIVED THE FOLLOWING TELEGRAM DATED 21 APRIL FROM MR KEVIN SINCLAIR, DAILY EXPRESS CORRESPONDENT IN HỌNG KONG: QUOTE WOULD APPRECIATE FULL STATEMENT ON PRESENT STATE OF DISCUSSION BETWEEN UNITED KINGDON AND CHINA RECARDING ESTABLISHMENT

OF CHINESE DIPLOMATIC REPRESENTATION IN HONG KONG. UNDERSTAND THIS DISCUSSED BY YOU ON LAST VISIT PEKING AND WOULD BE GRATEFUL FULLEST DETAILS. REGARDS KEVIN SINCLAIR POSTSCRIPT HONG KONG

UNQUOTE.

2. PROVIDED YOU SEE NO OBJECTION, I WOULD BE GRATEFUL IF YOU WOULD PASS THE FOLLOWINC REPLY TO MR SINCLAIR FROM MR ROYLE: QUOTE THANK YOU FOR YOUR TELEGRAM OF 21 APRIL, MY COLLEAGUE LADY TWEEDSMUIR WILL BE ANSWERING A PARLIAMENTARY QUESTION IN THE HOUSE OF LORDS ON THIS SUBJECT ON 9 MAY. I DO NOT THINK IT WOULD BE RIGHT FOR ME TO ANTICIPATE WHAT SHE WILL SAY.

I MI SORRY THAT I CANNOT BE MORE HELPFUL. KIND REGARDS, ANTHONY ROYLE UNQUOTE,

DOUGLAS-HOME

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PS/MR ROYLE MR WILFORD SIR E NORRIS

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M HONG KONG 260846Z

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TO ROUTINE FCO TELNO 445 OF 26 APRIL INFO PEKING.

THE FOLLOWING IS THE FULL TEXT OF A FRONT PAGE ARTICLE WHICH APPEARED IN THE SOUTH CHINA MORNING POST TODAY (THURSDAY) UNDER THE HEADING QUOTE A CHINA OFFICE IN HONG KONG A CERTAINTY UNQUOTE:-

CHINA IS VIRTUALLY CERTAIN TO HAVE A QUOTE REPRESENTATIVE

UNQUOTE OFFICE IN HONG KONG WITH THE NEXT FEW YEARS.

BUT JUST WHEN IT WILL BE SET UP IS THE BIG QUESTION.

TALKS AT A QUOTE SENIOR UNQUOTE LEVEL ARE BEING HELD IN WHITEHALL AND IN PEKING ABOUT THE FORMATION, THE STATUS AND THE LIKELY STAFFING OF THE CHINESE OFFICE IN HONG KONG.

BUT ALTHOUGH CHINA HAS RAISED THE QUESTION OF REPRESENTATION TWICE WITH BRITISH MINISTERS IN THE PAST YEAR IT HAS NOT BEEN PRESSED RECENTLY AT MINISTERIAL LEVEL.

IT SEEMS LIKELY, HOWEVER, THAT A GO AHEAD WILL EVENTUALLY BE GIVEN BY LONDON DESPITE SOME RESERVATIONS BY OFFICIALS.

ONE OF THE FORMOST ADVOCATES OF AN OFFICIAL CHINESE REPRESENT- ATION IN HONG KONG WITHIN THE PRESENT GOVERNMENT IS THE UNDER- SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS, MR ANTHONY

ROYLE.

IT IS UNDERSTOOD THAT SINCE MR ROYLE'S LAST TRIP TO CHINA LAST YEAR, WHEN HE WAS QUOTE OVERWHELMED UNQUOTED BY AN ENTHUSIASTIC CHINESE WELCOME AND FLEW IN A BRITISH JET AIRCRAFT WITH AN ALL-BRITIB CREW BACK TO HONG KONG FROM SHANGHAI, HE HAS BEEN PRAISING THE QUOTE NEW CHINA UNQUOTE IN LONDON.

IT IS KNOWN THAT HONG KONG GOVERNMENT REPRESENTATIVES HAVE SENT A FULL AND DETAILED REPORT TO LONDON ABOUT THE POSSIBILITIES OF ESTABLISHMENT HERE OF A CHINESE OFFICE.

THESE ARGUMENTS ARE, ON THE GOOD SIDE;

IT WILL MEAN GREATER CONFIDENCE IN HONG KONG IF AN OFFICIAL CHINESE REPRESENTATIVE IN THE COLONY INDICATES TO LOCAL PEOPLE

PUNERE ADE OUATE AUULTE MŁODY

TI WILL HEAN GAIRIET VOR DE NON IN HONG RUNG IF AN OFFICIAL CHINESE REPRESENTATIVE IN THE COLONY INDICATES TO LOCAL PEOPLE

THE OUTSIDE WORLD THAT THE CHINESE ARE QUOTE QUITE HAPPY H THE WAY THINGS ARE GOING UNQUOTE.

IT WILL MEAN AN EASING OF VISA AND TRADE RESTRICTIONS.

BUT ON THE OTHER SIDE OF THE COIN, IT IS BELIEVED THE FOLLOWING POINTS HAVE BEEN TAKEN INTO CONSIDERATION:

IN TIMES OF PEACE THERE WILL BE NO PROBLEMS, BUT IN TIMES OF STRIFE THE ESTABLISHMENT OF AN OFFICIAL CHINESE OFFICE IN THE COLONY WOULD BE A FOCAL POINT FOR TROUBLE.

THIS COULD HAVE A CRUCIAL BEARING ON CONFIDENCE IN THE COLONY.

ANOTHER DANGER IS THAT, ALTHOUGH CHINESE GOVERNMENT OFFICIALS KOULD NOT SEEK, NECESSARILY, TO PROPEL THEMSELVES INTO THE PUBLIC EYE, PRESENT MINOR TROUBLES SUCH AS TEACHERS' DISPUTES COULD MEAN A LARGE PROPORTION OF THE POPULATION WOULD REGARD THE MAINLAND REPRESENTATIVE AS A QUOTE CHINESE GOVERNOR OF HONG KONG UNQUOTE.

THE QUESTION OF CHINESE REPRESENTATION WILL BE RAISED IN THE BRITISH HOUSE OF LAORDS NEXT WEEK BY A LABOUR PEER, LORD BROCKWAY,

LORD BROCKWAY ASKED IN THE HOUSE OF LORDS ON APRIL 16 ABOUT PROPOSALS THAT CHINA SHOULD HAVE OFFICIAL STATUS IN HONG KONG,

HE WILL BE ANSWERED IN AN OFFICAL STATEMENT BY THE BRITISH GOVERNMENT TO THE LORDS ON 9 MAY.

SPEAKING TO THE S.C.M. POST IN A RADIO TELEPHONE INTERVIEW LAST NIGHT HE SAID HE WOULD BE QUOTE DELIGHTED UNQUOTE IF THE CHINESE REQUEST FOR REPRESENTATION IN HONG KONG WAS GRANTED.

QUOTE I THINK IT IS VERY NECESSARY UNQUOTE, LORD BROCKWAY SAID, QUOTE ESPECIALLY IN VIEW OF THE CHINESE POSITION IN REGARD TO HONG KONG UNQUOTE.

HE SAID HE HAD NEVER BEEN TO THE COLONY, BUT REGARDED CHINA AS BEING VERY IMPORTANT TO THE PEACE OF THE WORLD.

QUOTE I AM A TRADE UNIONIST AND SOCIALIST AND I AM CONVINCED THAT THE ATTITUDE TAKEN BY THE WORKERS IN CHINA TO IMPROVE THEIR CONDITIONS AND THE ANSWERS TO THE FAMILY OF NATIONS ARE CORRECT UNQUOTE.

PORNTIONS ALL THE A

"UNQUOTE.

FORD BROCKWAY SAID: QUOTE THERE HAVE BEEN SOME INDICATIONS IN LONDON THAT A DECISION IN THE DIRECTION OF WHITEHALL AGREEMENT TO CHINESE REPRESENTATION IN HONG KONG HAVE BEEN REACHED

UNQUOTE.

ASKED IF THIS MEANT A DECISION AT THE LEVEL OF THE PRIME MINISTER, HE SAID HE COULD NOT SAY, BUT ADDED IT HAD QUOTE CERTAINLY BEEN DISCUSSED BY THE FOREIGN AND COM440NWEALTH OFFICE UNQUOTE.

LORD BROCKWAY SAID HE WOULD NOT DISCUSS THE POSSIBILITIES OF CHINESE REPRESENTATION IN HONG KONG BEING UNDER CONSIDERATION BY THE BRITISH PARLIAMENT.

THE OFFICIAL CHINESE REPRESENTATIVES IN HONG KONG TODAY ARE SPLIT INTO THREE CAREFULLY-SELECTED BRANCHES

HSINHUA, THE NEW CHINA NEWS AGENCY STAFF, OF WHICH THE LEADING MEMBER IS MR LIANG WEI-LIN, WHO TRAVELS TO AND FRO ON A DIPLOMATIC PASSPORT WHICH DESCRIBES HIM AS A BONA FIDE MEMBER OF THE PEKING CONSULAR CORPS.

OTHER MEMBERS OF THE PEKING PRESS IN HONG KONG ARE ALSO QUOTE DIPLOMATS UNQUOTE ACCORDING TO THEIR PASSPORTS.

MEMBERS OF THE CHINA RESOURCES STAFF, WHO HEAD MULTI-MILLION DOLLAR NEGOTIATIONS WITH WESTERN ORGANISATIONS. AND

STAFF OF THE BANK OF CHINA, THE MEN WHO HAVE TWO MAJOR ROLES IN THE ECONOMY OF THE COLONY: HANDLING THE VAST IN-FLOW

OF REMITTANCES FROM OVERSEAS CHINESE AND THE TRADE DEALS (MOSTLY INVOLVING HONG KONG FOOD) FROM CHINA.

MACLEHO SE

NNNN

SENT AT 26/09272 RD

HONG KONG STANDARD. APRIL 15πt' 73

Peking bid for

HK office:

No official

moves yet

―

BRITAIN is not going to allow China to establish an office in Hongkong at the moment. But the Foreign Office has admitted that the politically sensitive question is still being considered.

According to news agency reports from London, a Foreign Office spokesman told a press conference on Friday that Peking's proposal was "under review but not 1. "vely at present".

spokesma for the Hongkong Government saad in

statement yesterday That the question of a Chinese representabre coming into the Colony "hat not been muted

The Hongkong Government but it has been raised front time to time duping the past few year with the Brush Government

"So far as we know," said the $lalement "no official discussions are taking place at the in".

Observer in London clasın The British Government's hexilation over the question it is 15 yeast since Peking fast ninde the request waser from The supposition thai China wishes to establish a senior official liangkong who might interfere with the role of the coloral government here.

Experts

Hongkong

תון

however, disagree with

umpban and can see little hami in such an office being ket up.

Professor P. B. Harris of the Political Science Department of the Hongkong Unirealty told the longkong Standard yesterday that he saw renewed unese request s "extremely interesting" but not ma political manoeuvre.

the

Prol Ilarms sard that because Peking had mad request Instead of **demand" to Britam pigosted that Hungkong was being regarded with " Than degree of acceptance" by Chine. He saw the "staggering difference from the CS demands for representation in 1967

1 "Yolc of confidence in Hongkong".

The professor said "that he thought

"perfectly possible" that Britain would agree to the request ultimately. He said, however, that in view

of the legal and procedural complexities connected with Poking making further

recognition of Hongkong's colonul status, the capacchet of a Chinese representative would have to be "very clearly defined".

It was a possibility, "but a very unlikely one" that Peking intended the more political weapon. said Proj Harris.

He pointed out that China ready has a "fully equipped Trade Service in Hongkong al the Bank of China and he supposed that new office would be an "official" one. Prof Harris said that it was also possible that a senior official of The Bank may be appointed to the new post. thus avoiding aggravating Brush fear that à top

from Peking who could be seen at a public al representative would tike The poil.

man

Another China

expert. Professor Dut Shen-yu, political science levarer at the Chinese University also thought i likely

that the office would be sel

1..

"It will be an informal one which can handle not only Irude. bul other

including consulur and townsas matka he said. lie added that the office night also serve Lor Clunese exploratory discusIDES with the Tawan Gioremmail.

PELLING BEL

Mr Ma Man-fai, Chairman of the United Nations Association in Hongkong, disagreed with the professors. He said that although the Chinese would hol want to interfere in the dumetic affaus of Hongkong. it was inevitable that the offic would become involved because of the wishes of the people of the Colony.

" peñonally welcome the move. he said. "and 1 think the majonly of Hongkong People will be delighted". Mi

because the

Ma felt that

longkang Goverturient wer "paymg only tipservice" to Chinese

Focalisation, that

presentative would become " voice that the Govemment can respect".

Diplomati in the Colony KUTS that the proposed office would be polítically involved.

File.

19/5/1973

Reference StRD FED

Hansard Extract

Vol: 342 House of Commans

Co1:403

Lords

written

Oral

403

Hong Kong and

【9 MAY 1973]

HOUSE OF LORDS

Wednesday, 9th May, 1975

The House meat half past two of the clock: The LORD CHANCELLOR on the Woolsack.

Prayers-Read by the Lord Bishop of Portsmouth.

HONG KONG AND CHINESE REPRESENTATION

Chinese Representation

404

the success of the trade mission in China. and in view also of the great hopes that there are of developing trade with China, it would be a pity if this matter could not be dealt with in a manner satisfactory to both sides?

BARONESS 'TWEEDSMUIR BELHELVIE: My Lords, we certainly hope that it can be settled to the satis- faction of both sides. But we do not think that it has in fact any link with trade, which, as the noble Lord rightly said, is improving.

LORD BYERS: My Lords, may I ask the noble Baroness whether, parallel with

LORD BROCKWAY: My Lords, I beg this, it would not be possible to accelerate

leave to ask the Question which stands

in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether China bas requested the establishment of a diplomatic mission in Hong Kong: and, if so, what decision has been reached.

THE MINISTER OF STATE. FOREIGN AND COMMONWEALTH OFFICE (BARONESS TWEEDSMDIR OF BELIELVIE): My Lords, the Chinese Government has proposed that a repre sentative of the Ministry of Foreign Affairs should be established in Hong Kong. This proposal is still under consideration.

LORD BROCKWAY: My Lords. I thank the noble Baroness for that Answer. May I ask her whether there is not increasing evidence that Peking recognises the value of Hong Kong separate and distinct from China an à link with the rest of the world, and may it not be that a diplomatic mission would stabilise this position immediately, what- ever the ultimate status of Hong Kong, particularly if democratic self-government is developed within Hong Kong itself?

BARONESS TWEEDSMUIR OF BELHELVIE: My Lords, I am not so sure about a diplomatic mission. The Chinese Foreign Minister has accepted my right honourable friend's invitation to visit this country, and although dates remain to he settled I think that perhaps that is the best way to pursue the matter.

LORD BESWICK: My Lords, is the nulle Ikutinieka aware that in view of

H.L. 23 D 2

the provision of a direct air link between Peking and Hong Kong for trade and other purposes? When I was in Peking that was what was required.

BARONESS TWEEDSMUIR BELHELVIE: My Lords, the Chinese have suggested that talks about an air service agreement should take place in Peking at the end of May.

LORD SEGAL: My Lords, is not the present situation in Hong Kong suffi- ciently stable to justify a continuation of the status quot

BARONESS

TWEEDSMUIR BELHELVIE: My Lords, it is perfectly true that there are well-established chan- nels of communication, and that is why my right honourable friend is giving this matter long and careful thought.

SCOTTISH HOUSING AND HOUSING ASSOCIATIONS

2.39 p.m.

The Earl of DUNDEE: My Lords, I beg leave to ask the Quartión which stands in my name on the Order Paper.

The Question was as follows:

Tisk Her Majesty's Government What functions they foresce for housing associations and housing socialios-in their proposal for solving the outstand- ing problem of Sportsh housing.

The MINISTER or STATE, SCOT. TISIL OFFICE (LORD POLWARTII): My

leofds, the Government look to the.. Housing Corporation under new Chairman, Lord Goodiem, to help the lic using associatiques and housing societies.

WEDNESDAY 9 MAY 1973

fan spanlı

THE LORD BROCKWAY:

To ask Her Majesty's Government whether China has requested the establishment of a diplomatic mission in Hong Kong; and, of so, what decision has been reached.

ANSWER

(BARONESS TWEEDSMUIR OF BELHELVIE, MINISTER OF STATE, FOREIGN AND COMMONWEALTH OFFICE)

My Lords, The Chinese Government has proposed that a representative of the Ministry of Foreign Affairs should be established in Hong Kong. This proposal is still under consideration.

み

/ 3

supup.

(17296) DL297473 Im 12/72 0.WB.Led Op.363

House of Lords

PARLIAMENTARY QUESTION

for ORAL answer on.

Wednesday 9 May

Mr. Davies, FED May we have your draft reply by 5 pm on Friday, 4 May please.

Lady Tweedsmuir's Office 17 April

WEDNESL

Td+

stablishment

ent at a digi muatic

History of the Request

In February 1956, the Chinese Government

proposed that a representative of the Ministry

of Foreign Affairs should be established in Hong

Kong. In February 1958, the then Secretary of

State for Foreign Affairs told the Chinese Chargé

d'Affaires that we could not agree to the proposal.

The Chinese Government revived their proposal in

March 1972. My Hon Friend, the Parliamentary

Under-Secretary of State (Mr Royle), and My Rt

Hon Friend the Secretary of State for Foreign and

Commonwealth Affairs, discussed the subject with

members of the Chinese Government during their

visitSto Peking in 1972. The proposAT is still

under consideration.

Mr Clark

Mr Evans

B & C

CHINESE OFFICIAL REPRESENTATION IN HONG KONG

2. Mr Guest has minuted that in replying to Mr Sinclair's request, Mr Royle naturally feels he cannot go any further than Lady Tweedsmuir, who will be answering a Parliamentary Question on this subject today.

3. I think we might ask the Governor to try to persuade Mr Sinclair to avoid this channel of communication in future since he derives no benefit from it (and it involves everybody in a certain amount of unnecessary work).

I submit a draft telegram. HKIOD and News Department

concur.

9 May 1973

H L. Davies

Far Eastern Department

CONFIDENTIAL

SECRETS

mi Crowson. M. Clark-

183

49A

speck; a bow Th and Richard Hughes's

rece

GOVERNMENT HOUSE

HONG KONG

äride in the

Economist.

香港總督府

TS 2/1126/50

R.B.

Des Michat.

15/5.

3/3.:!

Enter

4th May 1973 FED comment for.

FED. for

used in briefing. Mu

CHINESE REPRESENTATION IN HONG

Thank you for your letter of 17 April.

I agree that CH'IAO Kuan-hua went no further with Charles Smith than he did with Mr. Royle last June. In many ways what he said reflects more closely what CHANG Wen-chin had to say to Denis Greenhill in October.

14/

Naturally Smith's story has been widely taken up in the local press. The piece by Kevin Sinclair in the "South China Morning Post of 26 April (our telegram No. 445) perhaps went into the most detail. There has been a certain amount of editorial comment. Initially some of this was superficially favourable to what was known of the Chinese proposal; this was an entirely predictable piece of re-insurance and should not be taken to reflect the real views of the Chinese community in Hong Kong. You will have seen the piece in last week's Far Eastern Economic Review, which suggested that in return for accepting a representative we should get some promise that the New Territories lease should at least run its course. (Any such promise would of course be quite meaningless, and Derek Davies should know better than to suggest such a deal). Middle-of-the-road comment in the Chinese press has suggested that, although representation was a natural step on the path of the normalisation of relations with China, if the proposal was accepted the terms of reference of the representative should be closely written so that he had no right to concern himself with Hong Kong's internal affairs or with the activities of Chinese people here. The right-wing press has naturally been more openly opposed to the proposal. Although the implication of much of what has been written is that a representative may one day be

K.M. Wilford Esq., CMG

SECRET

Thaur

the amph :

allowed, the conditions suggested for his acceptance are such as to negate the generally forthcoming tone of the editorials. Indeed a group of leading Chinese editors explained to Jack Cater that while

of course they were completely opposed to the idea, 1

they felt they had to be careful what they wrote. they wrote too openly against the idea, and then

a Representative came, their position would be difficult. The editorial in the South China Morning Post" of 30 April (copy enclosed) reflects a fairly mature

The story was probably as responsible as any other factor for knocking 300 points off the Hang Seng stock exchange index.

Dick

The public airing of the proposal appears to have caught the local communist hierarchy on the hop and unbriefed. Our own sources suggest that there has been no officially-inspired discussion at least in the middle and lower echelons in Hong Kong, and there has been a tendency to discount the reliability of the accounts in the newspapers. Stratton's letter of 25 April to Richard Evans related the very negative attitude to the proposal taken by K.C. Jay. To what extent this means that the local hierarchy are not at one with Peking on this is hard to say, but it is significant that they were not briefed by Peking on the deliberate airing of the issue with the Hong Kong journalists, and so were caught short when the story broke. I listed Chinese motives for pressing for an official Representative in para 13(a) of my despatch of 11 January. I think one can now add to these a desire to oust the old brigade, bring in new blood, and impose direct Peking (MFA) control. They are proceeding with this anyway but it would obviously be timely, from their point of view, to give the reformed mission official status. Of course if I am right, this would account for the surprising absence of briefing of the local hierarchy by Peking.

I fully agree that we need not change our negotiating position for the air services talks. I expect that representation will come up at some point during the discussions, but not necessarily in

SECRET

A contingency brust with the mended for

the first round or indeed at the negotiating table itself. If it is raised formally we may then have to consider whether the Secretary of State should be advised to get his reply in, if only to clear the air. But this is for the future. We look forward to seeing the British team in Hong Kong at the end of the month. One problem will be to ensure that if the issue does arise the strong BOAC element in the team are aware of the implications (assuming that they will be present at the more general, non-technical discussions).

On your paragraph 4: one would like

His

to see the full text. At first sight in view of what he said afterwards it may be that what CH'IAO meant was that the problem of Hong Kong's future need not come up for some time. I don't think one can read into it any wish for early reversion. claim that there was no time to discuss representation during his visit to London last autumn is presumably Ye quite disingenuous. The same would be true of a

similar claim in respect of subsequent meetings between British and Chinese ministers, when the matter was not mentioned.

I am sending a copy of this to

Morgan in Peking.

Yes, but Ika

Chinese have a

하

strong sense of

propnciy

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Foreign

off are are only

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discussed by foreign to incsting Ministes.

R.E. 1575.

SECRET

ና

Soul: China Morning Post

MONDAY, APRIL 30, 1973

Confidence must be our first concern

In any consideration of official Chinese representation in Hongkong the dominant issue is not whether the Chinese authorities desire it, but how it can be resolved without disturbing the confidence of the people of Hongkong-

"It wit be generally agreed that in the state of relations between Hongkong and China today any move this community can make to develop closer ties with a country so deeply linked by blood, culture, custom and commerce, is a step in the right direction.

Indeed, this newspaper has suggested a number of ways in which Hongkong and China could become more, closely linked such as container transportation, communications and economic services..

China is now reported to have expressed a desire to be represented by some more official presence. And it is likely that people here will, in time, accept this as being in the best interests of Hongkong and China.

It would be wrong, however, to plunge into this without recognising that there are substantial doubts about the consequences; these stem less from the role which the Chinese Government might expect their representative to play than the way in which his position might be exploited here.

It is admittedly unlikely that the Chinese authorities would appoint a consul-general to a territory which they do not consider to be "foreign."

There are, however, other titles which could be devised to make this distinction, though this is of far less concern to people in Hongkong, who have long accepted Chinese statemeats on the future of the Colony with equanimity, than the duties lie is accorded.

The main demand is likely to be that any official representative should deal purely with official business but in no way involve himself with domestic matters which remain the sole concern of the Hongkong Government.

If there were to be any departure from this principle it would very rapidly lead to a damaging loss of confidence with serious repercussions on the social and economic fabric of Hongkong.

Moreover, any breach could lead to a rapid deterioration in relations which would be inimical to Hongkong's interests AS well 85 an embarrassment to China.

These are just some of the reasons why the proposal deserves very careful thought in Peking, London and Hongkong before it is taken any further.

In the meantime, it is difficult to believe that the continued absence of an official representative can pose any greater difficulties or problems to Peking than it has experienced in the past 24 years.

Indeed, during this time we have advanced a long way to setting up good contacts at official levels which have proved hoth practical and workable and have resulted in smooth relations in matters such as communications, rail and sea links, trade, travel, finance and banking, to name the most obvious,

Hongkong welcomes this trend as a tangible expression of ever-improving relations. Our mais desire, however, is to ensure that any further step we take contributes to the

SECRET & PERSONAL

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R.E.

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Dear Michael,

Yes.

R.E.

7/5.

CLARE REPRESENTATION IN HONG KONG

1 Thank you for a copy of your letter of 17 april and of Charles omith's record. it is inter-stin, that Ch'iao Auan-bua should arrogated to himself with what has traditionally been chou n-lai's role in providing leaks to non-officials designed afarently to influence a Government's policy.

2 un the face of it, Un'iao's remarks on the future of mong kong represent a tightening of the time-scale since Chi E'eng fei told the secretary of state on 31 uctober last year that "Hi Government should be clear about China's general policy; that they are not in a hurry to recover uong kong". But uni did not of course say, nor so far as I am aware has vhou ever said, that 1998 is the earliest date that the chinese would expect to rɩcover ang nong. it would not be characteristic of the chinese to close their options in this way. Moreover, the chinese nave clearly uerived encouragement from further developments in the rar Lastern situation during the last six montus and their curious ceremony in the ureat all of the reople on 28 rebruary suggests that they may Low see some real prospect over the I wonder. Dext few years of a Taiwan reunification which would in turn influence the лong nong relationship.

R.E.

7/5.

üh'iao's remarks art tous not definite enoughto indicate a change of policy on the long term issue; but I think we snould interpret them (since he would have expected them to get back to us) as an attempt to soften us up and, at the

SECRET & FEROVNAL

2/.....

アー

DEURE) AND PERSONAL

- 2 -

same time, as a ballon d'essai on the question of official representation. what we have seen from here of public reaction in mong song and London may, I think, have con- firmed the chinese in their view that taey can tighten the screws without riskin, too much. However, in the snort term, the Chinese Goverment has as much interest as we have in the maintenance of Jusiness confidence and stacility in nong kong and this in turn will strengthen our hand in dealing with any pressures. I agree, therefore, that

ing

Ch'iao's remarks should not influence our initial, position /negotiat- in the forthcoming talks on an air services agreement. But we must recognise that we may encounter obstacles that have more to do with Chinese tactics for securing their objective on representation than with the merits of the case itself.

I am still sponnistic

That the Chinese will

or link mero issues

during our tovincomming talks with Them.

R.E.

Your Ey

Jhorl.

(Mn Morgan)

7/5.

Copied to: oir hurray maclehose aʊNG MBE

Governor of dong hong

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DELMET AND PERSONAL

Caliberia!

EXTRACT

Extract Trae Eastcend Economic Review

25/25/23

补

OUR MAN IN HONGKONG

CHINA is continuing the process of establishing Triendly bilateral relations with the countries on its periphery, with the obvious exception of the Soviet Union. It is hardly conceivable that in 12 months' Lime, China's relations with India and Bangladesh will be as artificially strained as they are today. It is even possible that China will close the circle. Just as Peking's vitriolic attacks on US imperialism rose lo a climax prior to the arrival in China of Henry Kissin- ger, so the level of abuse being directed against Mos- cow today could conceivably presage an attempt to achieve a détente with the "social imperialists.

The revival of the suggestion that China should et up a representative government office in Hong- kong must be seen within the context of China's eneral campaign to clear the decks of any obstacles that could impede the smooth operation of its for- ign relations and foreign trade. Peking has given various verbal assurances to British ministers that the question of Hongkong is of no particular mo- inent and can wait until the problem of Taiwan has een settled. China's need to import sophisticated foreign technology makes Hongkong's contribution to its foreign reserves now running at about £500 nillion (US$1,245 million) annually an essential Factor in China's economic equation, for the recent barvest setbacks will ensure that Peking will go on mporting cereals at least for the next few years, vhile its generous foreign aki programme also cats nto the limited supply of hard cash. An official nission could facilitate the flow of trade and could cuarantee that Hongkong would more efficiently ex- and its future role as a "shop window" for foreign technology on China's doorstep, within a commu- nity offering no political challenge to China which obviates the need to have foreign sales representa tives stationed permanently in Peking or Canton.

Counting tomorrows

At first glance, it would appear that the advan- ages to Hongkong would be even greater than those iccruing to China. By establishing such a mission, Peking would come close to giving de Jure recogni- on to the "separateness" of the enclave on its oast, thus conferring an even longer term future on community which has until recently been unable To count its tomorrows.

Nevertheless, Hongkong and Britain (which will be the final arbiter of the response to Peking) are de- ermined to look this gift horse very cautiously in he mouth. The colony's past experience of a Chi- ese commissioner who represented the Nationalist Government until 1950 was not a happy one. Less Trusting souls recall the excesses of the 1967 riots

nd ask themselves how much more embarrassed the

Hongkong Government would have been had there been a Peking representative in the colony at that time.*

But even if China's foreign policies do not change drainatically yet again, the head of any such mission would be an obvious target for petitions from disgruntled elements in Hongkong's society, from striking schoolteachers and evicled tenants to those resentful of increased Crown tents and the landlords of opium divans and unregistered doctors operating within the "Walled City." Presumably Hongkong will want a fairly watertight guarantee that the mission would not give l'eking's backing to such causes. If not, the Governor could easily find himself in the situation feared by one of his prede- cessors, Sir Alexander Grantham, who was against the proposal (when mooted in 1956) on the ground that it would present him with a "rival" governor.

A question of face

On the other hand, Hongkong's colonial, proto- colaire society does not accord proper prestige to the Government of the People's Republic - diplo matically or socially. It is widely recognised that the heads of the New China News Agency, the Bank of China and of the other branches of China's govern- ment in Hongkong are in every sense official re- presentatives (a fact which in itself disposes of most of Hongkong's worries about how the head of a Pe- king mission would conduct himself). Inadequate steps are taken to ensure that these distinguished men are accorded their proper importance within the life of the colony.

On balance, it would seem that the gains to Hongkong's status and the other marginal advan- tages which would accrue from such a mission out- weigh the possible disadvantages listed by the cau- tious. Another factor which must now enter into the calculations is the loss of goodwill that would result from a refusal by London to respond to Peking's feelers.

There is one way of swinging the scales defini- Lively in Hongkong's favour. London could point out to Peking that Hongkong exists today by virtue of certain 19th-century treaties denounced by China as "unequal" and therefore invalid. If China is to establish an official mission in Hongkong, London coukl justifiably ask China to take advantage of the occasion to state in black and white that it was will. ing, of its own volition and obviously under no duress, at least to let the New Territories lease run its course. It would be a fair request, and there is no reason China should remain enigmatically evasive on the issue. With such a guarantee, Hongkong could welcome with open arms the arrival of Peking's man.

SOUTH CHINA MORNING POST

APRIL 18H 73

Peking office will

'solve snago

Peking. Apr. 17. The Chinese Government favours opening "representative organisation" in Hongkong, an authoritative Chinese source said today.

He was commenting na reports from London concerning the eventual opening of a Chinese mission in the Bitish Colony,

"The Chinese Government has already posed the problem of establishing a representative organisation of the Chinese Government in Hongkong," the source said.

"The Chinese Government considers that establishment of such an organisation would be useful for resaiving many concrele problems between Kwangchow (Canton) and Hongkong.

He did not specify the nature of the "representative organisation" that Was envisaged. However, observers here excluded the possibility that it would be a consulate. For Peking, the British Colony 19 an integral part of Chinese

territory.

The comments. of the authoritative Chinese source left the impression in the question of a "representative organisation" in Hongkong had been raised several times.

Reports from Hongkong recently indicated that that was the case.

- AFP.

सा

Mr Wilford

Wilto:

Mr Goodenough

Parliamentary Unit

CONFIDENTIAL

A.&✓

FER

For off

LORD BROCKWAY: PARLIAMENTARY QUESTION: CHINESE OFFICIAL

REPRESENTATION IN HONG KONG

I submit a draft reply and draft Notes for Supplementaries.

They incorporate suggestions by the Governor of Hong Kong. The

Embassy at Peking concur. I also submit a background note on

the history of the problem and our current attitude towards it.

2. Lord Brockway's interest in the subject will have been

aroused by a number of press articles on the subject, particularly

that in the Financial Times of 13 April.

The Chinese last mentioned their proposal to us officially

on 29 December, when the Chinese Ambassador referred to it during

a call on the Permanent Under-Secretary. The Permanent Under-

Secretary told the Ambassador that the Secretary of State was

giving the matter his personal consideration, but that, because

of the problems this raised for us, this consideration would have

to be long and careful. The Secretary of State intends to give the Chinese Foreign Minister (Chi P'eng-fei) our definitive

answer when the latter visits Britain later this year. The visit

was postponed from February and new dates remain to be settled.

The Secretary of State did not think it appropriate to refer to

the subject when he met the Chinese Foreign Minister during the

Vietnam Peace Conference in Paris in February and the latter did

! not bring it up. When the Secretary of State does speak to Chi P'eng-fei, he will speak from the attached document and give Chi

whe

CONFIDENTIAL

/P'eng-fei

CONFIDENTIAL

P'eng-fei a copy (this document is very strictly Confidential

until the Secretary of State has given it to the Chinese).

Although the matter was not raised by the Chinese with

Mr Walker or Mr Heseltine during their visit to China in March,

the Chinese took advantage of the presence of British press men

in Peking to leak details of their proposal. The senior Chinese

Minister of Foreign Affairs "(Ch'iao/Kuan-hua) told Mr Alan Hare

and Mr Charles Smith of the Financial Times about it during a

discussion on 31 March (a transcript of the discussion has been

given to us on a confidential basis by the Financial Times).

As a result, the Secretary of State was questioned by the

Financial Times during an unattributable press briefing on

13 April. The Secretary of State said that the question of

official Chinese representation in Hong Kong had been a live one

for some time; it would need careful consideration. He did not

think, however, that the lack of a solution need hold up the

development of commercial relations between Britain and China.

Nor did he think that it would in fact have this effect.

The

Financial Times published an article on the following day.

There has been some subsequent publicity including a front page

article in the South China Morning Post, a leader in the Far

Eastern Economic Review and an article in the Economist,

The article in the South China Morning Post makes it clear that

Lord Brockway favours the Chinese proposal.

хх

The Chinese decision to leak their proposal is part of a

well-established pattern in their negotiating tactics. When the

question of Chinese official representation was a live issue in the

1950s, the Chinese used precisely the same tactics; as a result,

Parliamentary interest was aroused. Mr Selwyn Lloyd replied to

/a Parliamentary

- 2 -

CONFIDENTIAL

a Parliamentary question on the subject on 6 June 1956. During

the negotiations for the exchange of Ambassadors rakakians with

China, Chou En-lai leaked details of the talks to Mr Neville

Maxwell, who subsequently published a detailed article in the

Sunday Times.

16.

The subject is of considerable delicacy. On the one hand,

we do not wish to say anything publicly which could be interpreted

by the Chinese as shutting the door in their face before the

Secretary of State has spoken to the Chinese Foreign Minister.

On the other hand, we do not wish to imply that further study of

the proposal will lead us to accept it. The reply has been

[drafted with these considerations in mind.

Hong Kong and Indian Ocean Department concur.

3 May 1973

R.M. Evens

R M Evans

Far Eastern Department

When hady Turademir has rear the pp she

aught

and

like to have

Falk with F.E.D.

Ken Wilfe 40.

- 3-

CONFIDENTIAL

CHINESE OFFICIAL REPRESENTATION IN HONG KONG BACKGROUND

There is a long history to this problem. The Nationalist Government had an Official Commissioner in Hong Kong from 1945 to October 1949. He gave the Government of Hong Kong a great deal of trouble by, for example, claiming a status superior to that of the consular representatives of other countries. 2. In February 1956 the present Chinese Government formally proposed to our Chargé d'Affaires in Peking that they should

be allowed to establish in Hong Kong an "Office of a Commissioner of Foreign Affairs of the People's Republic of China". We told the Chinese in February 1958 that we could not agree to this proposal.

3. When agreement was reached on the exchange of Ambassadors in March 1972 the Chinese formally revived their 1956 proposal on Representation. It was discussed at some length during both Mr Royle's visit to Peking in May and the Foreign and Commonwealth Secretary's visit in October. Both Mr Royle and Sir Alec Douglas-Home told the Chinese that we could not accept their proposal. The Chinese asked us to give further consideration to it. The Foreign and Commonwealth Secretary agreed to do so but he held out no hope that he would change his mind. Не intends to take the matter up with the Chinese Foreign Minister when the latter visits Britain later this year.

i 4+

The main reason for our dislike of the Chinese proposal is that we believe the establishment of a representative of the Chinese Ministry of Foreign Affairs would have a strongly adverse effect on confidence in the future of the Colony. We do not believe that sufficient practical benefits would accrue to justify the risk of such an appointment. There are already a large number of Chinese Government officials in Hong Kong (eg in the Bank of China, NCNA and the China Travel Service) who deal very efficiently with all practical questions of commerce, culture, information and transport.

N.C.HR. Cauchina News Dying-

New

CONFIDENTIAL

[

FINANCIAL TIMES ·

China presses

for envoy

in Hong Kong

BY CHARLES SMITH, FAR EAST CORRESPONDENT

PBH

• PUSIR Av. Pusos

1 3 APR 1973

Cha

APR 1973 19

to F considerable / with the question of representative.

Rejected

| GHINA HAS been exerting pres- vice to China, but the flow is sure on Britain so agree to the taken that this matter is con appoinuneat of A0 offical nected Chinese representative in Hoaz extent Kong. British reluctance 10 agree to this proposal could delay the settlement of other bilateral issues between the two countries, including plans for the opening of a BOAC scheduled

· service to Peking or Shanghai

This has emerged from sources In both London and Peking, altbruch China's sense of

Although Chinese officials regard the whole question of

■ representative in Hong Kong as being

I mature for solution the issue is not a new one.

It was Arst raised by the urgency over the matter may Chinese Government la February, not, as gel, be fully shared by 1936, and rejected two years Britain.

later by Britain, China raised the maiter again in the spring of 1971 and it is known to have come up in the jalka held in Peking last year by Sir Alec At the moment the People's Douglas Home. the Foreign Republic is represented in Hong Secretary, and Mr. Antbosy Kong by the director of the Royle, the junior Foreign Offica Hasibua" (New Ghora) News Minster responsible for Far Agency-in frangement which Eastern affairs.

Irony

bus continued since the estab Britain apparently avoided bshment of the Communist giving a direct answer to the régime in 1949, but which the Chinese proposal at both sets Government in Peking clearly of talks and the malter is still regards as anachronistic.

understood to be "under con

Chinese officials have com- sideration by the UK. Govern mented on the irony that ment. However there are obvious China should be about lo estab- Teasons why there should be Wish a liaison office in Washing, besitation about China's request. stop but cifrớt yet have a repre-

sentative on its own doorstep.

But i was assured in Pekine recently that the lack of a repre sentative office in Hong Kong poses + number of practical problems, particularly in the communications deld.

One is that an official Chinese representative LET Hong Kong could become a focus for polit cal activity in the Colony whether or not wanted this to happen.

China itself

Another fear is that the open- ing of a Chinese official missing might Imply a change "In the Colony's status which, at the very least, could undermine business confidence.

China claims it is not con- venient for members of lae Chinese Government in travel through Hong Kong while the Britain and China are representat.ve isque remains un- theoretically at nila over the settled (A recent case in point status of Hong Kong since the was the new Chinese ambassador U.K. regards the territory as a to Japan, who travelled by British Calogy while China sees special aircraft to Tokyo ratner, it is a piece of Chinese territory than pass through the British which has passed under foreigh Colony.)

administration as the result of

Officials in Peking have also an "unequal treaty." indiested there will be difficul-

tles about agreeing on the establishment of direct rail

Talks

link between Hong Kong and This disagreement

however,

Canton while what they regard has not prevented a smooth as the principal Isrue lo Hong Kong remains outstanding.

There is less precision in | Peking about the question of an ale services agreement and the start of a BOAC sebeduled ser

working relationship between Chine and Hong Kong and there have been no fears that Chioa

burry lo obtaio the

Colony's "reversion."

Whether or not China really means to link the Hong Kong representative (ssue with the proposed ROAC Mights late China, progress on the latter Issue appears to have been slow.

The text of an air services agreement has been presented to China by Britain but there bas still been no detailed Chinese reaction to the draft. It is hoped, however. That talks may get under way in London during the bext few weeks.

CONFIDENTIAL

Not the Used.

FORM OF WORDS TO BE USED BY THE SECRETARY OF STATE IN TALKING TO THE CHINESE FOREIGN MINISTER

"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 different. 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 relationship 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 believe, 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 the relations between Britain and China are

concerned, there can be no doubt that the situation in Hong Kong is a factor of importance. If, therefore, we share an interest

in preserving good relations between our two countries, we also share an interest in doing nothing in, or over, Hong Kong which could disturb the situation there.

"I have given most careful consideration to your proposal since I spoke to you and the Prime Minister last autum. In the light of this consideration I have come to the conclusion that the time is not ripe for a change in the pattern of your representation in Hong Kong. I would therefore ask you not to press your proposal. It is my judgement that it will be some time before circumstances might change in such a way as to warrant an alteration in the arrangements which now exist."

Approved by the seciciary 87-sicie

CONFIDENTIAL

R.E.

375.

Afidentid.

Transcript of arks about Hong Kong made by China's Vice Foreign Minister, Chiau Kuan-hua during an Interview with Alan Hare,

hanaging Director of the Financial Times and Charles Smith, Far East Correspondent of the Financial Times. The Interview was held in Peking on Friday, 30th March, 1973.

In response to a question (at the opening of the

interview) about the state of Sino-British relations, Chiao said

that, in general, relations were developing very smoothly. However,

there was one question which was "still not solved". This was the

question of the Chinese Government appointing a representative in

Hong Kong. If this matter was not settled, other questions "would

arise". Chiao said that relations between Canton and Hong Kong

were "very close" but many things "could become troublesome" without

a settlement of the representative issue. Hong Kong's relations

with the mainland were the same as they had been "since the Second

World War". At the moment, Chiao said, the Hsinhua director acted

as China's representative in the Colony.

Mr.

Chiao said that Premier Chou had discussed Hong Kong

"very clearly and frankly" with Sir Alec. But the British atill

seemed to feel "some difficulty" over the Chinese proposal.

Royle had said in June that Britain "wanted to keep the balance"

in Hong Kong. The proposal to station a representative in Hong Kong

had been made "a long time ago" but the time for solution of the

question was "now mature". Practical matters whose solution could

be facilitated by an agreement on the representative included the

establishment of air connections and a direct rail link between

Hong Kong and Canton and the issue of visas for China in Hong Korg.

Chiao said it was difficult to issue visas without an official

representative. He pointed out that China was about to open a

liaison office in Washington. It was ironic that it could not have

a representative in Hong Kong.

- 2

ist

At the end of the interview, Chiao reverted to ilong; Kong and the question of BCAC flights arose. Chiao said he "believed it would be much easier for BOAC to fly to Teking" if the represent tive issue were settled. The representative issue and the question o*

airline connections were "connected to a considerable extent".

the moment it was "not impossible, but not convenient for Chinese officials to go to Hong Kong". China's ambassador to Japan went by special aircraft to Tokyo "otherwise he could have taken the Hong Kong route". In answer to questions about 1998, etc. Chiao said "the problem of Hong Kong's future does not lie in the long term".

The British public was "not clear about changes in the

world situation. 1998 is still 25 years away - with 25 years we

can work great changes". Changes in the world situation

"including the realignment of various forces" would continue and

would accelerate.

Chiao said that the representative issue had

not been discussed on his own visit to London because of lack of

time.

IMMEDIATE CYPHER/CAT A

GIS 200

CONFIDENTIAL

FM FC 0 1217102

(FE)

CONFIDENTIAL.

DESKBY 135001Z BOTH,

TO IMMEDIATE GOVERNOR HONG KONG TELEGRAM NUMBER 365 OF 12 APRIL 1975

AID TO PEKING,

CHINESE REPRESENTATION IN HONG KONG

ON THE STRENGTH OF REMARKS MADE TO CHARLES SMITH OF THE FINANCIAL TIMES BY CH'IAQ XUAN-HUA AT A RECENT INTERVIEW IN PERING, SMITH'S COLLEAGUE ROBERT GRAHAM ASKED ME ABOUT THIS SUBJECT AT AN

UNATTRIBUTABLE BRIEFING WHICH I GAVE TO THE BRITISH DIPLOMATIC PRESS TODAY (12 APRIL). Į SAID THAT THE QUESTION OF OFFICIAL CHINESE REPRESENTATION IN HONG KONG HAD BEEN A LIVE ONE FOR SOME

TIME: IT WOULD NEED CAREFUL. CONSIDERATION. I DID NOT THINK,

HOWEVER, THAT THE LACK OF A SOLUTION NEED HOLD UP THE DEVELOPMENT OF COMMERCIAL RELATIONS BETWEEN BRITAIN AND CHINA. NOR DID I THINK

THAT IT WOULD IN FACT HAVE THIS EFFECT.

SMITH INTENDS TO PUBLISH A PIECE ON THE SUBJECT IN THE FINMICIAL TIMES TOMORROW (13 APRIL). WE HAVE PUT THE CHINESE PROPOSAL IN ITS HISTORICAL CONTEXT AND HAVE EXPHASIZED TO HIM THAT IT IS STILL UNDER

CONSIDERATION.

CH'IAO KUAI!-HUA APPARENTLY TOLD SMITH THAT ONLY **ONE BIG PROBLEM'' REMAINED IN RELATIONS BETWEEN BRITAIN AND CHINA: THE

QUESTION OF OFFICIAL CHINESE REPRESENTATION IN HONG KONG. THE SOLUTION OF OTHER PROBLEMS, SUCH AS THE ISSUE OF VISAS · (WE. SHALL ASK SMITH TO ELUCIDATE THIS) AND THE ESTABLISHMENT OF AIR AND RAIL LINKS BETWEEN HONG KONG AND CANTON, WAS LINKED WITH ITS SOLUTION. IN ANSWER TO A QUESTION, CH'IAO SAID THAT THE GRANT TO BOAG OF A SERVICE TO CHINA WAS 'CONNECTED TO A CON31 DERABLE

EXTENT''.

CONFIDENTIAL

/4. WE

CONFIDENTIAL

4. WE SHALL TELEGRAPH FURTHER WHEN VE HAVE SEEN THE PRESS TOMORROW AND HAVE HAD TIME TO DIGEST THE IMPLICATIONS OF WHAT CH'|AO IS ALLEGED TO HAVE SAID.

DOUGLAS-HOME

DEPARTMENTAL DISTRIBUTION

FED

IKIOD

NEWS D

RESEARCH D (F E SECT)

-2-

CONFIDENTIAL

A Cima

office in Hongkong

a certainty

By KI VIN SINGLADE

China is vir

hy certain to have a

"representative" office in alongkong within the next few years.

But just when it will be set up is the big question.

Talke at a "sunapr" lysed are being held in Wintchall and an Peking about the formalun, los M. tus and the bkdy stalling of the Chinese office in Lion; "DEN

But although China has no id que queridong në representation twice with Brush ministea in the past year it has not been pressed recently at maartenal fercl.

חי

It seema kkely, howev NEUMANNA að vill eventually be pivcob, Londo

'SOUT

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SOUTH CHINA

MORNING POST

APRIL 26TH '73

Anesiar danger is that

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Prime Minister. he said he Dr Cinese Government could not say, but added it and sock. "Certainly been discussed by propel the Foreign and Graves me the punge eye. Commonwealth Office."

Lord Brockway said he

LANI, E.

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•

100

Kakak kaland moura would propition of the possibilities

discuss the

of Chinese

time would repaird the representation in Hongkong sal roke-ontacte as a being under consideration by

of the Unitish Parlament

JOHLEN VOL)

question of Chinese Patty wath and wid oz raised in

Kalisia Hourent Lords next aya Labour Peer. Locu

Docu Brockway asked in tong bring of Lucas de April - Do proposals boat | Chuna Genou Bave offesk status HA

wad be wiseren in JA sean statement ay the Bustysli finatrawol to the Lords yo ALY.

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ng Roth, SC.M. 17+1 Spa Kapuasne intens Jew 27at he soat be would be

Marc Chimies

ellical Chinese

Babyh co

One of the forenave advocacy of an representation in Hong Kong w.chin

within the present Government is the Undo Secretary of State for Foreign auk Commonwealth Affairs, Me Anthony Boyl..

It is understood that songe Mr Righ

vene vunja or dus re-

year, when he was "overwhelmed" by an enthusiastic Cluese welcome and flew in a bronhijet murernft with an aid Britisie crew. back to Hongkong from Snanghai, he has been praising the "new China" in London.

It is known that Hongles; Governinent representatives have sent a full and detailed report to Fundon about the possibilities of establishnient here of a Chinese CHKAS

These arguments are, on the good sales

(c) It will mean greater civiliovence in Hongkong if an offical Chinese representative in the Colony indicates to local people

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Buahua, the New Chian News Agency staff, of which the leading nienaber is Me Lat Weiln, who travels to an TEA

jolitarik passport which devandes son as a bona didel raconoce of the Peking consulart

The Poking guera in Hongkong are also "kliplomats" according to Thier passports.

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C. Maqbers of the China Resources staff, who head unula milion dollar negotia Tina with Western organisa- Don, and

¤ Staff of the Bank of Chun The unen who have two major roles in die economy as lae Colony: haruling the vast in Chow (nd vennittances Overticus Chinese and the trade denin (mostly involving Tiongkong food) from China.

UNGEN

Mituria!

OUR MAN IN HONGKONG

CHINA is continuing the process of estualishing friendly bilateral relations with the count on its periphery, with the obvious exception of the Soviet Union. It is hardly conceivable that in i 2 months' time, China's relations with India and Bangladesh will be as artificially strained as they are today. It is even possible that China will close the circle. Just as Peking's vitriolic attacks on US imperialism rose to a climax prior to the arrival in China of Henry Kissin- ger, so the level of abuse being directed against Mos- cow today could conceivably presage an attempt to achieve a détente with the "social imperialists."

The revival of the suggestion that China should up a representative government office in Hong- kong must be seen within the context of China's general campaign to clear the decks of any obstacles that could impede the smooth operation of its for- eign relations and foreign trade. Peking has given various verbal assurances to British ministers that the question of Hongkong is of no particular mo- ment and can wait until the problem of Taiwan has been settled. China's need to import sophisticated foreign technology makes Hongkong's contribution to its foreign reserves now running at about £500 Įmillion (US$1,245 million) annually an essential factor in China's economic equation, for the recent harvest setbacks will ensure that Peking will go on importing cereals at least for the next few years, while its generous foreign aid programme also cats into the limited supply of hard cash. An official ission could facilitate the flow of trade and could barantee that Hongkong would more efficiently ex- pand its future role as a "shop window" for foreign technology on China's doorstep, within a commu- nity offering no political challenge to China which obviates the need to have foreign sales representa tives stationed permanently in Peking or Canton.

Counting tomorrows

At first glance, it would appear that the advan- tages to Hongkong would be even greater than those accruing to China. By establishing such a mission, Peking would come close to giving de jure recogni" tion to the "separateness" of the enclave on ils coast, thus conferring an even longer term future on a community which has until recently been unable to count its tomorrows.

Nevertheless, Hongkong and Britain (which will be the final arbiter of the response to Peking) are de- termined to look this gift horse very cautiously in

e mouth. The colony's past experience of a Chi- hese commissioner who represented the Nationalist Government until 1950 was not a happy one. Less trusting souls recall the excesses of the 1967 riots and ask themselves how much more embarrassed the

Hongkong Goverment would have been had there been a Peking representative in the colony at that time.

But even if China's foreign policies do not change dramatically yet again, the head of any such mission would be an obvious target for petitions from disgruntled elements in Hongkong's society, from striking schoolteachers and evicted tenants to those resentful of increased Crown rents and the landlords of opium divans and unregistered doctors operating within the "Walled City," Presumably Hongkong will want a fairly watertight guarantee that the mission woukl not give Peking's backing to such causes. If not, the Governor could easily find himself in the situation feared by one of his prede- cessors, Sir Alexander Grantham, who was against the proposal (when mooted in 1956) on the ground that it would present him with a "rival" governor.

A question of face

On the other hand, Hongkong's colonial, proto colaire society does not accord proper prestige to the Government of the People's Republic - diplo- matically or socially. It is widely recognised that the heads of the New China News Agency, the Bank of China and of the other branches of China's govern- ment in Hongkong are in every sense official re- presentatives (a fact which in itself disposes of most of Hongkong's worries about how the head of a Pe- king mission would conduct himself). Inadequate steps are taken to ensure that these distinguished men are accorded their proper importance within the life of the colony.

There is one way of swinging the scales defini- tively in Hongkong's favour, London could point out to Peking that Hongkong exists today by virtue of certain 19th-century treaties denounced by China as "unequal" and therefore invalid. If China is to establish an official mission in Hongkong, London coukl justifiably ask China to take advantage of the occasion to state in black and white that it was will- ing, of its own volition and obvody under no duress, at least to let the New Territories leastrum its course. I would be a fair request, and there is no reason China should remain enignetically owave on the issue. With such a guarantee, Honkong Crukl welcome with open arms the arrival of Peking's man,

ne building ban by putting up wned houses up to three gh. The order of the day in Bulgaria, though, is quite explicit : clear land and return it to the

storeys

INTERNATIONA REPORT

farmy.

China

No incentives, just due rewards

FILOM A SPECIAL CORRESPONDENT

The trains now run faster-as well as on time-in China and the internal Purlines fly at night which they did not do on your correspondent's last visit

6 years ago. Today he purged victims of the cultural revolution are being quietly restored and production is being increased by higher wages and material incentives. There are confident assur- ances that the fatal recklessnesses of the 1958 great

leap-now cheerfully admitted will not be repeated. There wil more discretion, Bexibility and

planning," and "decentralised

adjustments."

COMNIUNG

Conditions vary from 1.5 commune and from Shanghai to Canton, even on the approved tours for "foreign friends" which, quite naturally and understandably, concentrate on model teamis and

brigades. The value of peasany Labour also varies: able-bodied hand working peasants are paid more Kan less productive comrades. "As Igde as production goes up, personal jécomes go up," the leader of the Ho La brigade

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near lovely Wydih explained. In this showpiece commune which now deve- lops cultured pearls, though far less effectively man the Japanese do, a five- member family earned not quite £100 for 1,480 working days last year plus allotpients of grain, firewood, oil and vegetables. The family also grows vegetables on a private plot, whigh means one-sixtieth of an acre.

At another thriving brigade outsidej Canton, 547 out of 986 households had savings in the bank, a total of 150 houses had been built in the past two years and gra bicycles and 280 sewing machines had been bought. Briefings by singularly capable revolutionary com- mittee leaders stress "increased produc- tion for the state with wider distri bution for the passes." This principle differs from the sabotage operations carried out by the disgraced Liu Shao- chi in the 60s, it is alleged, because Liu evilly put the individual ahead of the state while the party now, somehow, puts the state ahead of the individual though it relies on the same incentives.

Comrade Lu Wen-tsai, veteran phairman of the Shanghai number one steelworks, argued that Shanghai factories were still untainted by material incentives. However, the fixed wage scales for workers vary from 42.50 yen a month to 126 and Comrade Lu him- self earns 200. This variation in the Shanghai wage levels reflected the degree of the worker's political con- sciousness, production level and years of experience." His own high wages, he explained, were due to his pre-libera- tion activity as a party member and had been fixed for different work in 1954.

THE ECONOMIST APRIJA 28, 1973

In Shanghai, Peking Cantors and the provinces, it is still frightening to listen to clear-eyed young students and workers-hand-picked, of course--in- sisting that they want only to continue in their present humble miles, to po only where the party sends them, to develop no personal ambitions or indi- vidual ralents in any foreseeable circuro- stanges. Yet the column of about poo young persons, seen by chance trudging

the station in Shanghai under evic- tion from their homes to some strangg rural setting, looked neither joyful pe expectant. One million have been práns- ferred from Shanghai alone in Me past five years.

Hongkong and China Ever closer

FROM OUR HONGKONG CORRESPONDENT

Peking's revived interest in opening a Chinese mission in Hongkong has caused no surprise here. The Chinese have already renovated an official rel= dence on Barker Road on the peak -which was once barred to all Chiues". Appropriately it is across the road fron the home of the American consul genera), where agents from the Central Intelligence Agency, lying on their stomachs around the pool, could f necessary photograph all visitors.

The last time the proposal for official diplomatic representation was openly made was in 1956, but the governor, Sir Alexander Grantham, objecte-l vigorously to the concept of "twin governors for the colony. Now the mood has changed and although the matter will be officially decided br tween Peking and London, opinion in Hongkong strongly favours the pr

per- posal.

The last mainland representation in Hongkong belonged to the Kuomin- tang, whose chief angrily departed for Brazil in 1950 after Britain recognised. China. Apart from the red guard violence in Hongkong in 1967, which was directed from bellicose Canton and not from Peking, Chiang Kai-shek was always more hostile to the colony than Mao has been, A Peking liaison office in Hongkong is likely to hasten another decision the restoration of direct rail- way passenger traffic between Canton and Hongkong, without the irritating train change at the border. After all,

large Peking mission recently visited Hongkong to discuss with imperialist interests the adaptation of western methods of hotel administration for the "middle kingdom"-or, ratlier, the

middle peopledorn.

CHINA (RELATIONS WITH

HONG KONG

42. Mr. Younger asked the Secretary of State for Foreign Affairs what request he has received from the Government of the People's Republic of China for the establishment of relations with the Gov- ernment of Hong Kong and what answer has been returned,

Mr. Selwyn Lloyd: On 25th February the Chinese Government informed Her Majesty's Chargé d'Affaires in Peking that they would like to establish in Hong Kong an office of a Commissioner of Foreign Affairs of the People's Republic of China with diplomatic and other staff. This proposal raises a number of issues which are still under consideration.

Mr. Younger: Is the Foreign Secretary aware that in a recent public statement Mr. Chou En-lai said that this was one of a number of matters which made an improvement in relations between the two countries difficult? Since this request apparently came in February, is it not about time that Her Majesty's Govern- ment made up their minds about what scems to be a quite normal proposal between States which recognise each other diplomatically?

Mr. Lloyd: I think that upon reflection the right hon. Member will realise that this question does raise a number of points. I do not think that real complaint can be taken about the time which wo have so far taken to consider the matter. After all, it was about four years after the Labour Government recognised them that the Chinese Government decided to send a chargé d'affaires to London. These matters want consideration, and we will consider them.

-3 JUN 1950

WEDNESDAY 9 MAY 1973

THE LORD BROCKWAY:

To ask Her Majesty's Government whether China has requested the establishment of a diplomatic mission in Hong Kong; and, of so, what decision has been reached.

ANSWER

(BARONESS TWEEDSMUIR OF BELHELVIE, MINISTER OF STATE, FOREIGN AND COMMONWEALTH OFFICE)

My Lords, The Chinese Government has proposed that a representative of the Ministry of Foreign Affairs should be established in Hong Kong. This proposal is still under consideration.

REFERENCES

Confidential: The Secretary of State's prepared reply to the Chinese

Flag A

Background Note on the problem

Flag B

Financial Times: 13 April 1973

Flag C

Flag D

Flag F Flag F Flag G

Transcript of Vice-Minister Ch'iao Kuan-hua's remarks: 30 March 1973

FCO Telegram No 365 to Hong Kong: 12 April 1973 Recent press reports

Mr Selwyn Lloyd's reply to Mr Younger's PQ: Hansard 6 June 1956

NOTES FOR SUPPLEMENTARIES

When did the Chinese last refer to the matter?

1. It was last raised during the visit of My Rt Hon Friend

to Peking in November 1972.

ofs-

Was it mentioned during the visit of the Chinese Vice-Minister

of Foreign Affairs in November / the visit of the Chinese

Minister of Trade in January / the visit to China of the

Secretary of State for Trade and Industry in March?

2. No, My Lords.

How was the matter left?

3. My Rt Hon Friend told the Chinese Prime Minister that he

would like to think about the matter. As I have said, the

proposal is still under consideration.

Is it not reasonable that the Chinese Government should have an

official representative in Hong Kong, particularly when many

other countries have Consulates and Commissions there?

particularly when 99% of Hong Kong's population is Chinese? /

particularly since the New Territories lease will expire in 1997?

4. The House will not expect me to debate the merits of the

Chinese proposal.

We are studying it in all its aspects.

How are day-to-day relations between Hong Kong and China now

conducted? ↑ H. G's Embarry - Peking-

!5.

There are well-established channels of communication

Then do HMG intend to reply?

2 Mikiai Paky

"(A)

6. My Rt Hon Friend told the Chinese Prime Minister that he

would like to think about the matter and that he would get in

touch with the Chinese Foreign Minister in due course.

When is the Chinese Foreign Minister due to visit Britain?

7. The Chinese Foreign Minister has accepted My Rt Hon

Friend's invitation to visit this country. Dates remain to be

Bettled.

l this issue affect commercial relations between Britain

and China?

18.

We see no reason why it need hold up the development of

our commercial relations.

Will this 188ue affect the negotiation of an Air Services

Agreement between Britain and China?

9. We see no connection between the two subjecta.

When will negotiations on the Air Services Agreement begin?

10. The Chinese have suggested that talks should take place

in Peking at the end of May.

That about better communications between Hong Kong and China?

11. We are in favour of improved links. Cable and telephone

communications have recently been improved.

What about the future of Hong Kong?

| 12.

We and the Government of Hong Kong have every confidence

in the future of Hong Kong. We do not anticipate any change

in the foreseeable future.

/13. HISTORY OF THE REQUEST

HISTORY OF THE REQUEST

13. In February 1956, the Chinese Government proposed that a representative of the Ministry of Foreign Affairs should be established in Hong Kong. In February 1958, the then Secretary of State for Foreign Affairs told the Chinese Chargé d'Affaires that we could not agree to the proposal. The Chinese Government revived their proposal in March 1972. My Hon Friend, the Parliamentary Under-Secretary of State (Mr Royle), and My Rt Hon Friend, the Secretary of State for Foreign and Commonwealth Affairs, discussed the subject with members of the Chinese

Government during their visits to Peking in 1972. (Noventa..)

- 3-

Mr Wilford

Mr Goodenough

Parliamentary Unit

For!

LORD BROCKWAY : PARLIAMENTARY QUESTION : CHINESE OFFICIAL

REPRESENTATION IN HONG KONG

I submit a draft reply and draft Notes for Supplementaries.

They incorporate suggestions by the Governor of Hong Kong. The

Embassy at Peking concur. I also submit a background note on

the history of the problem and our current attitude towards it.

2. Lord Brockway's interest in the subject will have been

aroused by a number of press articles on the subject, particularly

that in the Financial Times of 13 April.

The Chinese last mentioned their proposal to us officially

on 29 December, when the Chinese Ambassador referred to it during

a call on the Permanent Under-Secretary. The Permanent Under-

Secretary told the Ambassador that the Secretary of State was

giving the matter his personal consideration, but that, because

of the problems this raised for us, this consideration would have

to be long and careful. The Secretary of State intends to give

the Chinese Foreign Minister (Chi P'eng-fei) our definitive

answer when the latter visits Britain later this year. The visit

was postponed from February and new dates remain to be settled.

The Secretary of State did not think it appropriate to refer to

the subject when he met the Chinese Foreign Minister during the

Vietnam Peace Conference in Paris in February and the latter did

not bring it up. When the Secretary of State does speak to Chi

P'eng-foi, he will speak from the attached document and give Chi

/P'eng-fei

CONFIDENTIAL

P'eng-fei a copy (this document is very strictly Confidential

until the Secretary of State has given it to the Chinese).

Although the matter was not raised by the Chinese with

Mr Walker or Mr Heseltine during their visit to China in March,

the Chinese took advantage of the presence of British press men

in Peking to leak details of their proposal. The senior Chinese Minister of Foreign Affairs (Ch'iao Kuan-hua) told Mr Alan Hare

and Mr Charles Smith of the Financial Times about it during a

discussion on 31 March (a transcript of the discussion has been

given to us on a confidential basis by the Financial Times).

As a result, the Secretary of State was questioned by the

Financial Times during an unattributable press briefing on

13 April. The Secretary of State said that the question of

official Chinese representation in Hong Kong had been a live one

for some time; it would need careful consideration. He did not

think, however, that the lack of a solution need hold up the

development of commercial relations between Britain and China.

Nor did he think that it would in fact have this effect. The

Financial Times published an article on the following day.

There has been some subsequent publicity including a front page

article in the South China Morning Fost, a leader in the Far

Eastern Economic Review and an article in the Economist.

The article in the South China Morning Post makes it clear that

Lord Brockway favours the Chinese proposal.

The Chinese decision to leak their proposal is part of a

well-established pattern in their negotiating tactics. When the

question of Chinese official representation was a live issue in the

1950s, the Chinese used precisely the same tactics; as a result,

Parliamentary interest was aroused. Mr Selwyn Lloyd replied to

/a Parliamentary

CONFIDENTIAL

a Parliamentary Question on the subject on 6 June 1956. During

the negotiations for the exchange of Ambassadors reikiama with

China, Chou En-lai leaked details of the talks to Mr Neville

Maxwell, who subsequently published a detailed article in the

Sunday Times.

The subject is of considerable delicacy. On the one hand,

we do not wish to say anything publicly which could be interpreted

by the Chinese as shutting the door in their face before the

Secretary of State has spoken to the Chinese Foreign Minister.

On the other hand, we do not wish to imply that further study of

the proposal will lead us to accept it. The reply has been

drafted with these considerations in mind.

Hong Kong and Indian Ocean Department concur.

R M Evans

3 May 1973

Far Eastern Department

- 3 -

CONFIDENTIAL

1.vuse of Lord..

PARLIAMENTARY QUESTION

for ORAL│| answer on.

Wechesday 9 May

Day we love your draft reply by 5 pm on Friday, 4 Ilay please.

Lafly Tweedsmuir's uffice 17 April

WEDNESDAY THE 9TH OF MAY

**The Lord Brockway-To ask Her Majesty's Government whether Chinn hus requested the establishment of a diplomatic mission in Hong Kong; and, if so, what decision has been reached.

In February 1956, the Chinese Government

proposed that a representative of the Ministry

of Foreign Affairs should be established in Hong

Kong.

In February 1958, the then Secretary of

State for Foreign Affairs told the Chinese Chargé

d'Affaires that we could not agree to the proposal.

The Chinese Government revived their proposal in

March 1972. My Hon Friend, the Parliamentary

Under-Secretary of State (Mr Royle), and My Rt

Hon Friend, the Secretary of State for Foreign and

Commonwealth Affairs, discussed the subject with

members of the Chinese Government during their

visit to Peking in 1972. The proposal is still

under consideration.

(1729) DL89747) 1= 12/73 0.1.3.IAL Oμ463

REFERENCES

Confidential: The Secretary of State's prepared reply to the Chinese

Flag A

Flag B

Background Note on the problem Financial Times: 13 April 1973

Flag C

Flag D

Flag E Flag F Flag G

Transcript of Vice-Minister Ch'iao Kuan-hua's remarku: 30 March 1973

FCO Telegram No 365 to Hong Kong: 12 April 1973 Recent press reports

Mr Selwyn Lloyd's reply to Mr Younger's PQ: Hansard 6 June 1956

NOTES FOR SUPPLEMENTARIES

When did the Chinese last refer to the matter?

1. It was last raised during the visit of My Rt Hon Friend

to Peking in November 1972.

Was it mentioned during the visit of the Chinese Vice-l:inister

of Foreign Affairs in November the visit of the Chinese

Minister of Trade in January / the visit to China of the

Secretary of State for Trade and Industry in March?

No, My Lorde.

How was the matter left?

3. My Rt Hon Friend told the Chinese Prime Minister that he

would like to think about the matter. As I have said, the

proposal is still under consideration.

Is it not reasonable that the Chinese Goverment should have an

official representative in Hong Kong, particularly when many

other countries have Consulates and Commissions there? /

particularly when 99% of Hong Kong's population is Chinese? /

particularly since the New Territories leage will expire in 1997?

Lin The House will not expect me to debate the merits of the

Chinese proposal. We are studying it in all its aspecta.

How are day-to-day relations between Hong Kong and China now

conducted?

5. There are well-established channels of communication.

When do HIG intend to reply?

6. My Rt Hon Friend told the Chinese Prime Minister that he

would like to think about the matter and that he would get in

touch with the Chinese Foreign Minister in due course,

When is the Chinese Foreign Minister due to visit Britain?

7. The Chinese Foreign Minister has accepted My Rt Hon

Friend's invitation to visit this country. Dates remain to be

settled.

Will this issue affect commercial relations between Britain

and China?

8. We see no reason why it need hold up the development of

our commercial relations.

Will this issue affect the negotiation of an Air Serviços

Agreement between ritain and China?

9. We see no connection between the two subjects.

When will negotiations on the Air Services Agreement begin?

10. The Chinese have suggested that talks should take place

in Peking at the end of May.

What about bettor communications between Hong Kong and China?

We are in favour of improved links. Cable and telephone

communications have recently been improved.

11.

What about the future of Hong Kong?

12.

We and the Government of Hong Kong have every confidence

in the future of Hong Kong. We do not anticipate any change

in the foreseeable future.

2 -

CONFIDENTIAL

CHINESE OFFICIAL REPRESENTATION IN HONG KONG BACKGROUND

There is a long history to this problem, The Nationalist Government had an Official Commissioner in Hong Kong from 1945 to October 1949. He gave the Government of Hong Kong a great deal of trouble by, for example, claiming a status superior to that of the consular representatives of other countries. 2. In February 1956 the present Chinese Government formally proposed to our Chargé d'Affaires in Peking that they should

be allowed to establish in Hong Kong an "Office of a Commissioner of Foreign Affairs of the People's Republic of China".

We told

the Chinese in February 1958 that we could not agree to this

proposal.

3. When agreement was reached on the exchange of Ambassadora in March 1972 the Chinese formally revived their 1956 proposal on Representation. It was discussed at some length during both Mr Royle's visit to Peking in May and the Foreign and Commonwealth Secretary's visit in October. Both Mr Royle and Sir Alec Douglas-Home told the Chinese that we could not accept their proposal. The Chinese asked us to give further consideration to it. The Foreign and Commonwealth Secretary agreed to do so but he held out no hope that he would change his mind. He intends to take the matter up with the Chinese Foreign Minister when the latter visits Britain later this year.

4. The main reason for our dislike of the Chinese proposal is that we believe the establishment of a representative of the Chinese Ministry of Foreign Affairs would have a strongly adverse effect on confidence in the future of the Colony. We do not believe that sufficient practical benefits would accrue to justify the risk of such an appointment. There are already a large number of Chinese Government officials in Hong Kong (eg in the Bank of China, NCNA and the China Travel Service) who deal very efficiently with all practical questions of commerce, culture, information and transport.

CONFIDENTIAL

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ADB 30 IS

CHINESE "REPRESENTATIVE" IN HONG KONG

BR.

1. Mr Royle suggested on Hong Kong telegram No 445 that it

might be indicated privately to the editor of the South China

Morning Fost that the paper has got his views on the question

of a Chinese representative upside down.

2 =

The trouble with telling newspaper men what Ministerial

views are not, is that this can indicate by elimination what

they really are. At this stage when we have not replied to

the Chinese Government, I think it might be unwise to correct

Sommal this report in any formedr way.

3. I therefore recommend that when I am in Hong Kong next

week, I should have a word with the Governor and suggest that,

if a convenient opportunity arises, he might suggest to a

suitable audience that Ministerial views are by no means as

decided as was suggested in the press.

2 May 1973

cc:-

Sir D Watson

Mr Evans (FED)

DCSL-

A C Stuart

Hong Kong & Indian Ocean Dept

I take it would

food rom

M. Stuart to disar of tactics with the

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CONFIDENTIAL

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CONFIDENTIAL

/1973

TOP CORY

TO IMMEDIATE FCO TELNO 540 OF 2 MAY INFO IMMEDIATE GOVERNOR HONG KONG (PERSONAL),

ALY

YOUR TEWPO 425 TO HONG KONG: CHINESE REPRESENTATION IN HONG KONG,

1. I AGREE WITH THE DRAFT ANSWER AND NOTES FOR SUPPLEMENTARIES.

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3/302/1

TO IMMEDIATE FCO TELNO 475 OF 2 MAY/INFO PRIORITY PEKING,

YOUR TELNO 425 AND PEKING TELEGRAM TO YOU NUMBER 546 CHINESE

REPRESENTATION IN HONG KONG.

I AGREE WITH THE GENERAL LINE OF THE PROPOSED ANSWER AND I

CONSIDER THAT THE NOTES FOR SUPPLEMENTARIES COVER ALL THE NECESSARY

POINTS. I HAVE A FEW MINOR COMMENTS TO OFFER:

(1) I SUGGEST THAT THE WORDS QUOTE IN THE PRESENT CLIMATE OF

RELATIONS UNQUOTE AT THE END OF THE SECOND SENTENCE OF THE

SUBSTANTIVE ANSWER SHOULD BE OMITTED: ALTHOUGH FACTUALLY CORRECT THEY SEEM TO ME TO INVITE THE ENQUIRY WHY, NOW THAT RELATIONS HAVE EVIDENTLY IMPROVED, WE ARE DELAYING ACCEPTANCE OF THE RENEWED CHINESE REQUEST,

(2) I THINK THE WORD QUOTE RAISED UNQUOTE WOULD BE BETTER THAN

QUOTE DISCUSSED UNQUOTE IN THE FIRST SENTENCE OF THE FIRST SUPPLEMENTARY ANSWER.

(3) I SUGGEST THAT THE WORDS QUOTE BETWEEN THE TWO GOVERNMENTS

UNQUOTE IN THE PROPOSED ANSWER TO THE THIRD SUPPLEMENTARY SHOULD

BE REPLACED BY QUOTE ON SUCH MATTERS UNQUOTE. THE C.P.G. MAINTAINS

THAT WE ARE NOT A GOVERNMENT' BUT AN 'AUTHORITY', I SEE NO NEED TO OFFEND THEM ON THIS SEMANTIC ISSUE ON SUCH A PUBLIC, AND NO DOUBT MUCH-PUBLICISED OCCASION.

(4) THE SIXTH SUPPLEMENTARY QUESTION MIGHT PERHAPS BE EXPANDED TO EMBRACE SINO-BRITISH TRADE AND IF ABSOLUTELY NECESSARY SINO-HONG

KONG RELATIONS, AS WELL AS AN AIR SERVICES AGREEMENT.

MACLEHOSE

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FM F C 0 8115J0Z

CONFIDENTIAL.

TO IMMEDIATE GOVERNOR HONG KONG (PERSONAL) TELEGRAM NUMBER 425 OF 1 AY1?3 TO PEKING.

MY TELEGRAM NO 388 : CILHESE REPRESENTATION IN HONG KONG.

THE FOLLOWING IS OUR DRAFT ANSWER TO LORD BROCKWAY'S PARLIAMENTARY QUESTION, TOCETHER WITH DRAFT NOTES FOR SUPPLEMENTARIES. GRATEFUL FOR YOUR COMMENTS BY 1200Z ON 3 MAY.

ANSWER: **IN FEBRUARY 1956, THE CHINESE GOVERNMENT PROPOSED THAT A REPRESENTATIVE OF THE MINISTRY OF FOREIGN AFFAIRS SHOULD BE ESTABLISHED IN HONG KONG. IN FEBRUARY 1950, THE THEN SECRETARY OF STATE FOR FOREIGN AFFAIRS TOLD THE CHINESE CHARGE D'AFFAIRES THAT

WE COULD NOT AGREE TO THE APPOINTMENT IN THE PRESENT CLIMATE OF

RELATIONS. THE CHINESE GOVERNMENT REVIVED THEIR PROPOSAL IN MARCH 1972, MY HON FRIEND, THE PARLIAMENTARY UNDER-SECRETARY OF STATE (MR ROYLE), AND MY RT HON FRIEND, THE SECRETARY OF STATE FOR FOREIGN

AND COMMONWEALTH AFFAIRS, DISCUSSED THE SUBJECT WITH MEMBERS OF THE CHINESE GOVERNMENT DURING THEIR VISITS TO PEKING IN 1972. THE

PROPOSAL IS STILL UNDER CONSIDERATION?".

NOTES FOR SUPPLEMENTARIES

WHEN DID THE CHINESE LAST REFER TO THE MATTER?

IT WAS LAST DISCUSSED DURING THE VISIT OF MY RT HON FRIEND TO PEKING IN NOVEMBER 1972. WAS IT PENTIONED DURING THE VISIT OF THE CHINESE VICE-M1||STER OF FOREIGN AFFAIRS IN NOVEMBER/ THE VISIT OF THE CHINESE MINISTER OF TRADE IN JANUARY/ THE VISIT TO CHINA OF THE SECRETARY OF STATE FOR TRADE AND INDUSTRY IN MARCH?

NO.

CONFIDENTI AL

/HOW

HOW WAS THE MATTER LEFT?

CONFIDENTIAL

MY RT HON FRIEND TOLD THE CHINESE PRIME MINISTER THAT HE WOULD

LIKE TO THINK ABOUT THE MATTER. AS I HAVE SAID, THE PROPOSAL 15 STILL UNDER CONSIDERATION.

IS IT NOT REASONABLE THAT THE CHINESE GOVERNMENT SHOULD HAVE AN

OFFICIAL REPRESENTATIVE IN HONG KONG, PARTICULARLY WHEN MANY OTHER COUNTRIES HAVE CONSULATES AND COMMISSIONS THERE? / PARTICULARLY WHEN

99 PERCENT OF HONG KONG'S POPULATION IS CHINESE? / PARTICULARLY

SINCE THE NEW TERRITORIES LEASE WILL EXPIRE IN 1997?

THE HOUSE WILL NOT EXPECT ME TO DEBATE THE MERITS OF THE CHINESE

PROPOSAL. WE ARE STUDYING IT IN ALL ITS ASPECTS.

HOW ARE DAY-TO-DAY RELATIONS BETWEEN HONG KONG AND CHINA NOW

CONDUCTED?

THERE ARE WELL-ESTABLISHED CHANNELS OF COMMUNICATION BETWEEN

THE TWO GOVERNMENTS.

WHEN DO HMG INTEND TO REPLY?

MY RT KON FRIEND TOLD THE CHINESE PRIME MINISTER THAT HE WOULD

LIKE TO THINK ABOUT THE MATTER AND THAT HE WOULD GET IN TOUCH WITH

THE CHINESE FOREIGN MINISTER IN DUE COURSE.

WIEN IS THE CHINESE FOREIGN MINISTER DUE TO VISIT BRITAIN?

THE CHINESE FOREIGN MINISTER HAS ACCEPTED MY RT HON FRIEND'S

INVITATION TO VISIT THIS COUNTRY, DATES REMAIN TO BE SETTLED.

WILL THIS ISSUE AFFECT THE NEGOTIATION OF AN AIR SERVICES

AGREEMENT BETWEEN BRITAIN AND CHINA?

WE SEE NO CONNECTION BETWEEN THE TWO SUBJECTS,

WHEN WILL NEGOTIATIONS ON THE AIR SERVICES AGREEMENT BEGIN?

-2-

THE CHINESE

CONFIDENTIAL

THE CHINESE HAVE SUGGESTED THAT TALKS SHOULD TAKE PLACE IN PEKING

AT THE END OF MAY.

WHAT ABOUT BETTER COMMUNICATIONS BETWEEN HONG KONG AND CHINA?

WE ARE IN FAVOUR OF IMPROVED LINKS, CABLE AND TELEPHONE

COMMUNICATIONS HAVE RECENTLY BEEN IMPROVED.

WHAT ABOUT THE FUTURE OF HONG KONG?

WE AND THE GOVERNMENT OF HONG KONG HAVE EVERY CONFIDENCE IN THE

FUTURE OF HONG KONG, WE DO NOT ANTICIPATE ANY CHANGE IN THE

FORESEEABLE FUTURE.

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COP COPY

FEH 3/30/1

1973

TO PRIORITY GOVERNOR HONG KONG TELNO 417 OF 38 APRIL INFO

PRIORITY PEKING

YOUR TELEGRAM NOS 444 AND 445: CHINESE REPRESENTATION IN HONG

KONG.

(FE)

1. MR ROYLE HAS RECEIVED THE FOLLOWING TELEGRAM DATED 21 APRIL FROM MR KEVIN SINCLAIR, DAILY EXPRESS CORRESPONDENT IN HONG KONG: QUOTE WOULD APPRECIATE FULL STATEMENT ON PRESENT STATE OF DISCUSSION BETWEEN UNITED KINGDOM AND CHINA REGARDING ESTABLISHMENT

OF CHINESE DIPLOMATIC REPRESENTATION IN HONG KONG. UNDERSTAND THIS DISCUSSED BY YOU ON LAST VISIT PEKING AND WOULD BE GRATEFUL FULLEST DETAILS. REGARDS KEVIN SINCLAIR POSTSCRIPT HONG KONG

UN QUOTE.

2. PROVIDED YOU SEE NO OBJECTION, I WOULD BE GRATEFUL IF YOU WOULD PASS THE FOLLOWING REPLY TO MR SINCLAIR FROM MR ROYLE: QUOTE THANK YOU FOR YOUR! TELEGRAM OF 21 APRIL. MY COLLEAGUE LADY TWEEDUIR WILL BE ANSWERING A PARLIAMENTARY QUESTION IN THE HOUSE OF LORDS ON THIS SUBJECT ON 9 MAY. I DO NOT THINK IT WOULD BE RIGHT FOR ME TO ANTICIPATE WIAT SHE WILL SAY.

I AM SORRY THAT I CANNOT BE MORE HELPFUL. KIND REGARDS, ANTHONY

ROYLE UNQUOTE.

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나

Cutting dated

ECONOMIST

28 APR 1973

fürt

33./1

Lety

Hongkong and China

Ever closer

FROM QUA HONGKONG CORRESPONDENT

Peking's revived interest in opening a Chinese mission in Hongkong has caused no surprise here. The Chinese have already renovated an official resi dence on Barker Road on the peak ~~~~which was once barred to all Chinese. Appropriately it is across the road from the home of the American consul general, where agents from the Central Intelligence Agency, lying on their stomachs around the pool, could if necessary photograph all visitors.

two

The last time the proposal for official diplomatic representation was openly made was in 1955, but the governor, Sir Alexander Grantham, objected vigorously to the concept of governors for the colony." Now the mood has changed and although the matter will be officially decided be- tween Peking and London, opinion in Hongkong strongly favours the pro- posal.

The last mainland representation in Hongkong belonged to the Kuomin tang, whose chief angrily departed for Brazil in 1950 after Britain recognised China. Apart from the red guard violence in Hongkong in 1967, which was directed from bellicose Canton and not from Peking, Chiang Kai-shek was always more hostile to the colony than Mao has been. A Peking liaison office in Hongkong is likely to hasten another decision the restoration of direct rail- way passenger traffic between Canton and Hongkong, without the irritating train change at the border. After all, a large Peking mission recently visited Hongkong to discuss with imperialist interests the adaptation of western methods of hotel administration for the "middle kingdom "-or, rather, the middle peopledom.

EলJ

CONFIDENTIAL

Agreed.

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Mr Evans

Mihorgan

CHINESE OFFICIAL REPRESENTATION IN HONG KONG

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1. Kevin Sinclair the Daily Express correspondent in Hong

Kong has sent a telegram (attached) to Mr Royle asking for a

"full statement" on the present state of discussion between

the United Kingdom and China about Chinese official representa-

tion in Hong Kong. Press interest in this subject continues

in Hong Kong, as Hong Kong telegrams No 444 and No 445 make

clear.

2. Lord Brockway has put down a Parliamentary Question for

oral answer on 9 May. We are in the process of preparing a

draft reply. In these circumstances we could avoid the

problem of what to say to Mr Sinclair by referring him to what

Lady Tweedsmuir will say on 9 May. Mr Royle will not wish to

say anything about the content of his talks in Peking last June

which were confidential.

3. I submit a draft telegram to the Governor of Hong Kong,

asking him to pass on Mr Royle's reply to Mr Sinclair.

HKIOD and News Department concur.

HL1 Davies

Far Eastern Department

27 April 1973 I Think Thai This is right.

agree

Kinhulfer A

FIDEN AL

R.n. Evans

27 April, 1973.

ICES

CONSULT TELEPHONE

To send Telegrams DIRECTORY OR TELEX

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ANTHONY ROYLE

HOUSE OF COMMONS

LONDONSW 1

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21 APR.

ENQUIRIES DIAL

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ELEX DIALLING

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POST

OFFICE

INTERNATIONAL TELEGRAPH SERVICES

To send Telegrams

CONSU

DIRECTORY OR TELEX DI

WOULD APPRECIATE FULL STATEMENT ON PRESENT STATE OF

DISCUSSION BETWEEN UNITED KINGDOM AND CHINA

REGARDING ESTABLISHMENT

OF CHINESE DIPLOMATIC REPRESENTATION IN

७

HONGKONG STOP UNDERSTAND THIS DISCUSSED BY YOU ON

LAST VISIT PEKING AND WOULD BE GRATEFUL ·

FULLEST DETAILS STOP REGARDS

KEVIN SINCLAIR POSTSCRIPT HONGKONG

POST

INTERNATIONAL TELEGRAPH SERVICES OFFICE

EN CLAIR GPS 900

Mr. Stuart (Hieros) night it not be indicated

FM HONG KONG 260846Z

UNCLASSIFIED

Privality to have got un views precis

I'm editor Itic i the

1973

"upside down"!

TO ROUTINE FCO TELNO 445 OF 26 APRILɅNFO PEKING.

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THE FOLLOWING IS THE FULL TEXT OF A FRONT PAGE ARTICLE WHICH APPEARED IN THE SOUTH CHINA MORNING POST TODAY (THURSDAY) UNDER THE HEADING QUOTE A CHINA OFFICE IN HONG KONG A CERTAINTY UNQUOTE:-

CHINA IS VIRTUALLY CERTAIN TO HAVE A QUOTE REPRESENTATIVE

UNQUOTE OFFICE IN HONG KONG WITH THE NEXT FEW YEARS.

BUT JUST WHEN IT WILL BE SET UP IS THE BIG QUESTION.

2/6

TALKS AT A QUOTE SENIOR UNQUOTE LEVEL ARE BEING HELD IN WHITEHALL AND IN PEKING ABOUT THE FORMATION, THE STATUS AND THE LIKELY STAFFING OF THE CHINESE OFFICE IN HONG KONG.

BUT ALTHOUGH CHINA HAS RAISED THE QUESTION OF REPRESENTATION TWICE WITH DRITISH MINISTERS IN THE PAST YEAR IT HAS NOT REFN PRESSED RECENTLY AT MINISTERIAL LEVEL.

IT SEEMS LIKELY, HOWEVER, THAT A GO AHEAD WILL EVENTUALLY BE GIVEN BY LONDON DESPITE SOME RESERVATIONS BY OFFICIALS.

ONE OF THE FOREMOST ADVOCATES OF AN OFFICIAL CHINESE_REPRESENT- ATION IN HONG KONG WITHIN THE PRESENT GOVERNMENT IS THE UNDER- SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS, MR ANTHONY

ROYLE.

IT IS UNDERSTOOD THAT SINCE MR ROYLE'S LAST TRIP TO CHINA LAST YEAR, WHEN HE WAS QUOTE OVERWHELMED UNQUOTED BY AN ENTHUSIASTIC CHINESE WELCOME AND FLEW IN A BRITISH JET AIRCRAFT WITH AN ALL-BRITIO CREW BACK TO HONG KONG FROM SHANGHAI HE HAS BEEN PRAISING THE QUOTE

NEW CHINA UNQUOTE IN LONDON.

IT IS KNOWN THAT HONG KONG GOVERNMENT REPRESENTATIVES HAVE SENT

A FULL AND DETAILED REPORT TUDON ABOUT THE POSSIBILITIES OF ESTABLISHMENT HERE OF A CHINESE OFFICE.

/THESE

THESE ARGUMENTS ARE, ON THE GOOD SIDE:

IT WILL MEAN GREATER CONFIDENCE IN HONG KONG IF AN OFFICIAL

CHINESE REPRESENTATIVE IN THE COLONY INDICATES TO LOCAL PEOPLE

AND THE OUTSIDE WORLD THAT THE CHINESE ARE QUOTE QUITE HAPPY

WITH THE WAY THINGS ARE GOING UNQUOTE.

IT WILL MEAN AN EASING OF VISA AND TRADE RESTRICTIONS.

BUT ON THE OTHER SIDE OF THE COIN, IT IS BELIEVED THE FOLLOWING

POINTS HAVE BEEN TAKEN INTO CONSIDERATION:

IN TIMES OF PEACE THERE WILL BE NO PROBLEMS, BUT IN TIMES OF STRIFE THE ESTABLISHMENT OF AN OFFICIAL CHINESE OFFICE IN THE

COLONY WOULD BE A FOCAL POINT FOR TROUBLE.

THIS COULD HAVE A CRUCIAL BEARING ON CONFIDENCE IN THE COLONY.

ANOTHER DANGER IS THAT, ALTHOUGH CHINESE GOVERNMENT OFFICIALS WOULD NOT SEEK, NECESSARILY, TO PROPEL THEMSELVES INTO THE PUBLIC EYE, PRESENT MINOR TROUBLES SUCH AS TEACHERS' DISPUTES COULD MEAN A LARGE PROPORTION OF THE POPULATION WOULD REGARD THE MAINLAND

REPRESENTATIVE AS A QUOTE CHINESE GOVERNOR OF HONG KONG UNQUOTE.

THE QUESTION OF CHINESE REPRESENTATION WILL BE RAISED IN THE

BRITISH HOUSE OF LAORDS NEXT WEEK BY A LABOUR PEER, LORD BROCKWAY.

LORD BROCKWAY ASKED IN THE HOUSE OF LORDS ON APRIL 16 ABOUT

PROPOSALS THAT CHINA SHOULD HAVE OFFICIAL STATUS IN HONG KONG.

HE WILL BE ANSWERED IN AN OFFICAL STATEMENT BY THE BRITISH

GOVERNMENT TO THE LORDS ON 9 MAY.

SPEAKING TO THE S.C.M. POST IN A RADIO TELEPHONE INTERVIEW LAST

NIGHT HE SAID HE WOULD BE QUOTE DELIGHTED UNQUOTE IF THE CHINESE

REQUEST FOR REPRESENTATION IN HONG KONG WAS GRANTED.

QUOTE I THINK IT IS VERY NECESSARY UNQUOTE, LORD BROCKWAY SAID,

QUOTE ESPECIALLY IN VIEW OF THE CHINESE POSITION IN REGARD TO

HONG KONG UNQUOTE.

/HE SAID

-2-

HE SAID HE HAD NEVER BEEN TO THE COLONY, BUT REGARDED CHINA

AS BEING VERY IMPORTANT TO THE PEACE OF THE WORLD.

QUOTE I AM A TRADE UNIONIST AND SOCIALIST AND I AM CONVINCED THAT THE ATTITUDE TAKEN BY THE WORKERS IN CHINA TO IMPROVE THEIR CONDITIONS AND THE ANSWERS TO THE FAMILY OF NATIONS ARE CORRECT

UNQUOTE.

LORD BROCKWAY SAID: QUOTE THERE HAVE BEEN SOME INDICATIONS IN LONDON THAT A DECISION IN THE DIRECTION OF WHITEHALL AGREEMENT

TO CHINESE REPRESENTATION IN HONG KONG HAVE BEEN REACHED

UNQUOTE,

ASKED IF THIS MEANT A DECISION AT THE LEVEL OF THE PRIME MINISTER, HE SAID HE COULD NOT SAY, BUT ADDED IT HAD QUOTE CERTAINLY BEEN DISCUSSED BY THE FOREIGN AND COMMONWEALTH OFFICE UNQUOTE.

LORD BROCKWAY SAID HE WOULD NOT DISCUSS THE POSSIBILITIES OF CHINESE REPRESENTATION IN HONG KONG BEING UNDER CONSIDERATION BY

THE BRITISH PARLIAMENT.

THE OFFICIAL CHINESE REPRESENTATIVES IN HONG KONG

TODAY ARE SPLIT INTO THREE CAREFULLY-SELECTED BRANCHES #

HSINHUA, THE NEW CHINA NEWS AGENCY STAFF, OF WHICH THE LEADING MEMBER IS MR LIANG WEI-LIN, WHO TRAVELS TO AND FRO ON A DIPLOMATIC PASSPORT WHICH DESCRIBES HIM AS A BONA FIDE MEMBER OF THE PEKING

CONSULAR CORPS.

OTHER MEMBERS OF THE PEKING PRESS IN HONG KONG ARE ALSO QUOTE DIPLOMATS UNQUOTE ACCORDING TO THEIR PASSPORTS.

MEMBERS OF THE CHINA RESOURCES STAFF, WHO HEAD MULTI-MILLION DOLLAR NEGOTIATIONS WITH WESTERN ORGANISATIONS. AND

/STAFF OF

--3-

STAFF OF THE BANK OF CHINA, THE MEN WHO HAVE TWO MAJOR ROLES

IN THE ECONOMY OF THE COLONY: HANDLING THE VAST IN-FLOW

OF REMITTANCES FROM OVERSEAS CHINESE AND THE TRADE DEALS (MOSTLY

INVOLVING HONG KONG FOOD) FROM CHINA,

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←

TOP COPY

TEH 3/31/1

TO ROUTINE FCO TELNO 445 OF 26 APRIL INFO PEKING.

мен

THE FOLLOWING IS THE FULL TEXT OF A FRONT PAGE ARTICLE WHICH APPEARED IN THE SOUTH CHINA MORNING POST TODAY (THURSDAY) UNDER THE HEADING QUOTE A CHINA OFFICE IN HONG KONG A CERTAINTY UNQUOTE:-

CHINA IS VIRTUALLY CERTAIN TO HAVE A QUOTE REPRESENTATIVE

UNQUOTE OFFICE IN HONG KONG WITH THE NEXT FEW YEARS.

BUT JUST WHEN IT WILL BE SET UP IS THE BIG QUESTION.

TALKS AT A QUOTE SENIOR UNQUOTE LEVEL ARE BEING HELD IN WHITEHALL AND IN PEKING ABOUT THE FORMATION, THE STATUS AND THE LIKELY STAFFING OF THE CHINESE OFFICE IN HONG KONG.

BUT ALTHOUGH CHINA HAS RAISED THE QUESTION OF REPRESENTATION TWICE WITH BRITISH MINISTERS IN THE PAST YEAR IT HAS NOT BEEN PRESSED RECENTLY AT MINISTERIAL LEVEL.

IT SEEMS LIKELY, HOWEVER, THAT A GO AHEAD WILL EVENTUALLY BE GIVEN BY LONDON DESPITE SOME RESERVATIONS BY OFFICIALS.

ONE OF THE FOREMOST ADVOCATES OF AN OFFICIAL CHINESE REPRESENT- ATION IN HONG KONG WITHIN THE PRESENT GOVERNMENT IS THE UNDER- SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS, MR ANTHONY

ROYLE.

IT IS UNDERSTOOD THAT SINCE MR ROYLE'S LAST TRIP TO CHINA LAST YEAR, WHEN HE WAS QUOTE OVERWHELMED UNQUOTED BY AN ENTHUSIASTIC CHINESE WELCOME AND FLEW IN A BRITISH JET AIRCRAFT WITH AN ALL-BRITIO CREW BACK TO HONG KONG FROM SHANGHAI, HE HAS BEEN PRAISING THE QUO TE

NEW CHINA UNQUOTE IN LONDON.

IT IS KNOWN THAT HONG KONG GOVERNMENT REPRESENTATIVES HAVE SENT A FULL AND DETAILED REPORT TO LONDON ABOUT THE POSSIBILITIES OF ESTABLISHMENT HERE OF A CHINESE OFFICE.

/THESE

THESE ARGUMENTS ARE, ON THE GOOD SIDE:

IT WILL MEAN GREATER CONFIDENCE IN HONG KONG IF AN OFFICIAL CHINESE REPRESENTATIVE IN THE COLONY INDICATES TO LOCAL PEOPLE AND THE OUTSIDE WORLD THAT THE CHINESE ARE QUOTE QUITE HAPPY WITH THE WAY THINGS ARE GOING UNQUOTE.

IT WILL MEAN AN EASING OF VISA AND TRADE RESTRICTIONS.

BUT ON THE OTHER SIDE OF THE COIN, IT IS BELIEVED THE FOLLOWING POINTS HAVE BEEN TAKEN INTO CONSIDERATION:

IN TIMES OF PEACE THERE WILL BE NO PROBLEMS, BUT IN TIMES OF STRIFE THE ESTABLISHMENT OF AN OFFICIAL CHINESE OFFICE IN THE COLONY WOULD BE A FOCAL POINT FOR TROUBLE.

THIS COULD HAVE A CRUCIAL BEARING ON CONFIDENCE IN THE COLONY,

THE QUESTION OF CHINESE REPRESENTATION WILL BE RAISED IN THE BRITISH HOUSE OF LAORDS NEXT WEEK BY A LABOUR PEER, LORD BROCKWAY.

LORD BROCKWAY ASKED IN THE HOUSE OF LORDS ON APRIL 16 ABOUT PROPOSALS THAT CHINA SHOULD HAVE OFFICIAL STATUS IN HONG KONG.

HE WILL BE ANSWERED IN AN OFFICAL STATEMENT BY THE BRITISH

GOVERNMENT TO THE LORDS ON 9 MAY,

SPEAKING TO THE S.C.M. POST IN A RADIO TELEPHONE INTERVIEW LAST NIGHT HE SAID HE WOULD BE QUOTE DELIGHTED UNQUOTE IF THE CHINESE REQUEST FOR REPRESENTATION IN HONG KONG WAS GRANTED.

QUOTE I THINK IT IS VERY NECESSARY UNQUOTE, LORD BROCKWAY SAID, QUOTE ESPECIALLY IN VIEW OF THE CHINESE POSITION IN REGARD TO

HONG KONG UNQUOTE.

/HE SAID

-2-

HE SAID HE HAD NEVER BEEN TO THE COLONY, BUT REGARDED CHINA AS BEING VERY IMPORTANT TO THE PEACE OF THE WORLD.

QUOTE I AM A TRADE UNIONIST AND SOCIALIST AND I AM CONVINCED THAT THE ATTITUDE TAKEN BY THE WORKERS IN CHINA TO IMPROVE THEIR CONDITIONS AND THE ANSWERS TO THE FAMILY OF NATIONS ARE CORRECT

UNQUOTE.

LORD BROCKWAY SAID: QUOTE THERE HAVE BEEN SOME INDICATIONS IN LONDON THAT A DECISION IN THE DIRECTION OF WHITEHALL AGREEMENT TO CHINESE REPRESENTATION IN HONG KONG HAVE BEEN REACHED

UNQUOTE.

ASKED IF THIS MEANT A DECISION AT THE LEVEL OF THE PRIME MINISTER, HE SAID HE COULD NOT SAY, BUT ADDED IT HAD QUOTE CERTAINLY BEEN DISCUSSED BY THE FOREIGN AND COMMONWEALTH OFFICE UNQUOTE.

LORD BROCKWAY SAID HE WOULD NOT DISCUSS THE POSSIBILITIES OF CHINESE REPRESENTATION IN HONG KONG BEING UNDER CONSIDERATION BY

THE BRITISH PARLIAMENT.

THE OFFICIAL CHINESE REPRESENTATIVES IN HONG KONG TODAY ARE SPLIT INTO THREE CAREFULLY-SELECTED BRANCHES #

OTHER MEMBERS OF THE PEKING PRESS IN HONG KONG ARE ALSO QUOTE DIPLOMATS UNQUOTE ACCORDING TO THEIR PASSPORTS.

MEMBERS OF THE CHINA RESOURCES STAFF, WHO HEAD MULTI-MILLION DOLLAR NEGOTIATIONS WITH WESTERN ORGANISATIONS. AND

/STAFF OF

-3-

STAFF OF THE BANK OF CHINA, THE MEN WHO HAVE TWO MAJOR ROLES

IN THE ECONOMY OF THE COLONY: HANDLING THE VAST IN-FLOW

OF REMITTANCES FROM OVERSEAS CHINESE AND THE TRADE DEALS (MOSTLY

INVOLVING HONG KONG FOOD) FROM CHINA.

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CONFIDENTIAL

1973

TO ROUTINE FCO TELNO 444 OF 26 APRIL INFO PEKING.

YOUR TELEGRAM 303.

FEM 3/5./1

CHINESE REPRESENTATION IN HONG KONG.

WE DO NOT KNOW THE SOURCE OF TODAY'S SOUTH CHINA MORNING POST ARTICLE (FULL TEXT IN MY IFT) BUT BELIEVE IT TO BE LARGELY SPECULATION FOLLOWING CHARLES SMITH'S STORY IN THE FINANCIAL TIMES.

2. WE HAVE SPOKEN UNATTRIBUTABLY TO THE EDITOR OF THIS AND OTHER LEADING NEWSPAPERS CONCERNING THE PARAGRAPHS WHICH REFER TO MR ROYLE AS QUOTE ONE THE FOREMOST ADVOCATES OF CHINESE REPRESENTATION IN HONG KONG UNQUOTE. WE HAVE SAID THAT THE MATTER HAS BEEN RAISED

FROM TIME TO TIME DURING RECENT YEARS WITH THE BRITISH GOVERNMENT. WE HAVE MADE IT CLEAR THAT MR ROYLE HAS MADE NO STATEMENT ON OR OFF THE RECORD WHICH AFFORDS ANY BASIS FOR THE VIEWS ATTRIBUTED TO HIM.

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THE TIMES

长

ترام

регис

علم

cutting dated

14th April 1973.19

Hongkong doubts over Peking mission offer

From Leo Goodstadt Hongkong, April 13

News agency reports today of China's desire to establish a mission in Hongkong have had a mixed reception in the colony.

The move would be highly welcome diplomatically to almost all shades of opinion be cause it would imply a subtle change in Peking's present atti- tude, which is de facto recogni- tion of a British dependent territory on "sacred Chinese soil". The more formal status of the colony as a British posses sion, which a Chinese mission to Hongkong would imply, would be a further demonstration of Peking's benevolent intentions towards the colony's long-term future.

Politically, however, opinion in Hongkong is divided. In the past the local administration has firmly opposed any such mis sion, fearing repetition of the attempts made before Chairman Mao Tse-tung came to power to use Chinese Government offi- cials in Hongkong as a rival centre of authority and a focal point for those who would like Peking to intervene in the colony's affairs.

These suspicions still prevail in official and private circles, although China now behaves as if Hongkong's Chinese popula tion and its welfare were the sole responsibility of the British authorities.

This relatively new attitude is becoming increasingly obvious, For instance, Peking has increased its export prices to Hongkong to almost world mar- ket lavels and dropped its previ. ous policy of giving Hongkong's

predominantly Chinese munity access to food and con- sumer goods at prices well below those paid elsewhere.

China has also enhanced its reputation with the Hongkong Government through the highly responsible behaviour of the Ministry of Finance officials sent to work in Peking-owned banks in the colony.

The local communist move. ment has also worked hard since 1969 to demonstrate that it re- flects Peking's own desire to see stability and reasonable material progress in Hongkong, and it has stayed out of industrial and other disputes during the past three years as far as possible.

A serious security problem would arise if a Chinese mission were located in the colony, as its staff would almost certainly be come the target for Taiwan agents. They are believed to have fomented acts of violence in the past in order to harm Chinese relations with Hongkong and Britain.

The site of the proposed mis sion is already known. It is mansion with extensive grounds which belonged formerly to the Chinese maritime customs and became Peking's property on the recognition of the People's Re- public by London in 1950. Our Diplomatic Staff writes: Foreign Office sources confirm that China has several times asked for official representa- tion in Hongkong since 1956, and particularly in the last two years. Britain has the request under consideration. It is not thought in Whitehall that the issue should affect Anglo-

relations on Chinese

other matters.

Ких

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TO PRIORITY GOVERNOR HONG KONG TELNO 388 OF 18 APRIL/AND TO PEKING.

(FE{{

1973

PERSONAL FOR GOVERNOR

MY TELEGRAM NO 383: CHINESE REPRESENTATION IN HONG KONG

LORD BROCKWAY HAS PUT DOWN THE FOLLOWING PARLIAMENTARY

QUESTION FOR ORAL ANSWER ON 9 MAY:

QUOTE TO ASK HER MAJESTY'S GOVERNMENT WHETHER CHINA HAS REQUESTED THE ESTABLISHMENT OF A DIPLOMATIC MISSION IN HONG KONG: AND, IF SO, WHAT DECISION HAS BEEN REACHED UNQUOTE.

2. WE SHALL SEEK YOUR COMMENTS BY TELEGRAM ON OUR DRAFT ANSWER AND NOTES FOR SUPPLEMENTARIES,

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SECRET AND PERSCHAL

Sir Hurray MeɑLehose ZOHO MBE HOTA LONG

17 April 1973

CHINESE REPRESENTATION IN HONG KONG

As promised in our telegram of 17 April, I molose copy of Charles Smith's transcript of the remarka Ch'lao Xuan-huz made to Alan Hare and him on 30 March. Smith says that this is the nearest he can get to a verbatia record. In producing it, he followed his notes faithfully and did not attempt to clarify a number of obseze passages. He has particularly asked that the Chinese should be given no grounds for suspecting that he has passed a transcript to us. have assured him that we shall respect his confidence.

The transeript clarifies the mysterious point about the issue of visas (paragraph 3 of 700 telegram No 365). Ch'iso sessa to have gone në further on this particular subject than ho did when speaking to Er Royle in June last yaar. At the same time, his words scho the recent rather petulant Chinese remark made in the context of the LPO's application for visas - that the China Travel Service in Hong Kong was not a properly ocartitated coamler office (Priny triogram to 26 to Hoà lưu Kong).

3. On the question of air services, our judgement is that our negotiating position need not be changed, Ch'imo did not say that BOAC would be unable to fly to Peking unless we gave the Chinese what they wanted over representation: and on the same day as Ch'ino talked to Hare the Deputy Director General of CAAC told Er Heseltine that "as far as services from Hong Long to Peking were concerned, the Chinese side would give it consideration in view of the friendship between Britain and China".

4. One point in the transcript did strike us as rather sinister. That is the phrase on the second page that "the problem of Hong Kong's future does not lie in the long tera". On the face of it, this suggests that Ch'iso is thinking in terms of reversion before 1997. On the other hand it could mean that what Chiao saw as "the problem", i.e, representation, might be resolved at a fairly early date.

BECRET AD PERSONAL

/ 5.

BEGRET AND PERSONAL

5. We should welcome your comments and those of Michael Morgan on these and any other points which may occur to you.

V H Morgan Esq PEKINO

(with enclosure)

K "

Wilfced

SECRET AND PERSCHAL

RESTRICTED

CYPHER CAT A

FM PEKING 140420Z

RESTRICTED

TO IMMEDIATE HONG KONG TELEGRAM NO 26 OF 14 MARCH, 1973

INFO ROUTINE FCO.

LONDON PHILHARMONIC ORCHESTRA: VISAS.

1. CONSULAR DEPARTMENT, MFA, RAISED LAST MINUTE DIFFICULTIES ABOUT ORCHESTRA'S VISAS WITH US THIS MORNING".

THE PROBLEM SEEMS TO HAVE BEEN A LACK OF COMMUNICATION BETWEEN THEM AND THE ASSOCIATION FOR FRIENDSHIP WITH FOREIGN COUNTRIES, TO WHOM WE HANDED PASSPORT DETAILS ON 8 FEBRUARY. CONSULAR DEPARTMENT EXPLAINED THAT THEY WOULD NORMALLY EXPECT SUCH VISAS TO BE ISSUED IN LONDON AND THAT ISSUE IN HONG KONG RAISED SERIOUS PROBLEMS FOR THE CHIMA TRAVEL SERVICE WHICH, AS WE KNEW, WAS

NOT A PROPERLY CONSTITUTED CONSULAR OFFICE.

WHEN WE EXPLAINED THE SITUATION THEY APPEARED MOLLIFIED AND HAVE UNDERTAKEN TO ENSURE THAT VISAS ARE AUTHORISED

FOR ISSUE IN HONG KONG.

HAVE APPLICATIONS ALREADY BEEN MADE? PLEASE LET US KNOW URGENTLY IF ORCHESTRA ARE ENCOUNTERING ANY DIFFICULTIES.

ADDIS

FILES

CRD

FED

[REPEATED AS REQUESTED]

RESTRICTED

ARIORITY

CYPHER CAT A

GPS 60

CLAFIDENTIAL

វ

FM FCO 171715Z

CONFIDENTIAL

(FED 3

TO PRIORITY GOVERNOR HONG KONG TELEGRAM NO 383 OF 17 APRIL 1973

AND TO PEKING.

YOUR TELEGRAM NO 398: CHINESE REPRESENTATION IN HONG KONG

PERSONAL FOR GOVERNOR

1. CHARLES SMITH HAS NOW GIVEN US IN CONFIDENCE A TRANSCRIPT

OF THE INTERVIEW WITH CH'LAO KUAN-HUA, WE ARE SENDING COPIES

TO YOU AND PEKING BY THE BAG CLOSING ON 18 APRIL UNDER A LETTER

OF COMMENT.

DOUGLAS-HGME

PILES

FED

HKIOD

M WILFORD

SIR E NORRIS

CONFIDENTIAL

COVERING SECRET

CONFIDENTIAL

Mr Wilford

→

FEH1 3/3-1/1

Mi Logan

Misinant has Mimelson.

не

Con...r.

Mi Heisey fo

Mi Clark 2714 21314 Co.r).

3074

R.E.

17/4.

CHINESE REPRESENTATION IN HONG KONG

I submit the draft of a letter for you to send to

Sir Murray MacLehose by the bag which closes at 10 am

tomorrow. I also submit the draft of a short telegram of

warning (we promised to telegraph again in FCO telegram

No 365 to Hong Kong).

2. Mr Stuart concurs in the two drafts.

17 April 1973

Rim. Eron

CONFIDENTIAL

RM Evans

Far Eastern Department

MW%

M. Stadt

-HKIO

THE FINANCIAL TIMES

THE FINANCIAL TIMES LTD BRACKEN HOUSE CANNON STREET LONDON EC4P 4BY TELEGRAMS FINANTIMO LONDON TELEX 888341-2 TEL 01-248 8000

E/CS/RJ.

Enier.

Dfi lene: i5 für Murray

Richard Evans, Esq.,

Far East Department,

Foreign & Commonwealth Office,

Whitehall London, S.W.1.

naceehore.

16th April, 1973.

RE.

17/14.

Dear Richard,

Here is the nearest I can get to a transcript of the Chiao interview. I have followed my notes faithfülly and have not attempted to clarify a number of obscure passages. I trust this is what you wanted.

With best wishes,

Yours sincerely,

རི་ད་གྱིས་ཐ་

Charles Smith

Mi Davies

Penose:.

will be present où r 心

Drieking meeting on 18 April. Discuss further action wilń

me.

Ack / Submi / seat.

Comments.

R.E.

10/4.

THE FINANCIAL TIMES LIMITED

REGISTERED IN LONDON HUMBER TETESE

Contbutions to The Financial Times Limited may be included in the company's syndication service for a penod of three months.

采

THE GUARDIAN

16 APR 1973

PBO PUSER

Aerial diplomacy

by PATRICK KEATLEY, Diplomatic Correspondent

The British Government is matter that the new Ambas-¡ resisting pressure from Peking sador to Japan refused to for the establishment of a con and few in a special plane change aircraft in Hongkong sulate-general in Hongkong and from Peking to Tokyo by thereby appears to be holding another route. up conclusion of an air service agreement with China which is frustrating for BOAC.

London chooses not to share J'eking's feeling of urgency but the Chinese are irritated by the fact that their only liaison office in Hongkong is the New China News Agency. So incensed are the Chinese about the Brush refusal to settle the

The tit-for-tat technique is now being employed by China to budge the Foreign Office. Peking has been given the text of a draft agreement for setting up air routes by BOAC and the Chinese airline but is refusing to reply until London acts on the Hongkong issue at least to the extent of agreeing to open talks.

surdly i insepresentation

Entert

Cha

Transcript of Remarks about Hong Kong made by China's Vice Foreign Minister, Chiao Kuan-hua during an Interview with Alan Hare,

naging Director of the Financial Times and Charles Smith, Far ast Correspondent of the Financial Times. The Interview was held in Peking on Friday, 30th March, 1973.

In response to a question (at the opening of the

However,

interview) about the state of Sino-British relations, Chiao said

that, in general, relations were developing very smoothly.