Chapter 18: So Much for Fairy Tales

Those who believed in fairy tales - particularly of geese laying golden eggs - thought it a mistake to remind China of the New Territories lease. They felt that, if nothing were done to draw attention to the fading 'use-by' shelf-life on the New Territories label, Hong Kong could slip through the 1997 time barrier with no one being the wiser.

There was in fact no prospect of ever playing things that way. The governor and his advisers were clear that, lacking sound arrangements for the future, confidence in Hong Kong would begin to run out soon after 1982. The precise year can be disputed, but there is no doubt that anxieties among investors would increasingly have undermined confidence as the deadline approached and nothing was done about it. Nor could the British administer Hong Kong after 1997 without an extension of the Order in Council from which the governor drew his authority; and no such legislation would have been possible without evidence of Chinese agreement.

It was a fallacy to believe the Chinese were content to let things run on. They had made repeated attempts to recover either the whole of Hong Kong or at least the New Territories. As far back as the close of World War I, the Chinese representative at the Paris Peace Conference had put forward a resolution calling for the abolition of spheres of influence in China, the return of foreign concessions and of leased territories, including - quite specifically - the New Territories.

Nevertheless expectations were raised in 1979 by an invitation from the Chinese Minister of Foreign Trade, as a result of which Sir Murray MacLehose made the first-ever official visit to China by a Hong Kong Governor. Confidence was further fuelled when Sir Murray returned from Beijing with an assurance from Premier Deng Xiaoping that Hong Kong people could set their hearts at ease.

Whatever comfort lovers of the status quo might gain from that statement was of brief duration. Against a background of continuing economic prosperity, and a cautious experiment with limited forms of representative government, tempered with concern for renewal of the New Territories lease and a settlement of the growing crisis of illegal immigration, Hong Kong watched with bated breath as Britain's Prime Minister Margaret Thatcher, fresh from victories in the Falklands War, made her way to Beijing in September 1982 for discussions with the Chinese leaders.

There had already been significant pronouncements in Beijing. Peng Zhen, a vice-chairman of the Communist Party and leading authority on constitutional and legal affairs had stated, in July that year, that Hong Kong, Macau and Taiwan were to become special administrative regions of the People's Republic. And in January that year, Britain's Deputy Foreign Minister Humphrey Atkins had met with Chinese Premier Zhao Ziyang and Vice-Premier Ji Pengfei. At these meetings, according to Wang Yincheng, in The Return of Hong Kong: "Zhao reiterated China's stand regarding the Hong Kong issue: First, China possessed the sovereignty over all the territory including the Island of Hong Kong, Kowloon and the New Territories. Second, the Chinese Government stressed Hong Kong's position as a free port and international trade and financial centre. Third, in the near future, both the Chinese and British sides would negotiate over Hong Kong's future position."

Despite these omens, it was hoped Mrs Thatcher's visit would produce some words of encouragement similar to those which - at least for public consumption - had been conveyed by Sir Murray on his return from China three years earlier. One hundred and eighty nine years had elapsed since Lord Macartney, envoy of King George III, headed in that direction to persuade China to open up to world - and more specifically British - trade. But that was long before Hong Kong came into existence, and even longer before it became rich and famous.

Wang Yincheng says that Deng Xiaoping told Mrs Thatcher: "No latitude is allowed in the issue of sovereignty. Frankly speaking, sovereignty is not negotiable. Now the time is ripe. It should be made clear that China will take back Hong Kong in 1997. In other words, China will not only take back the New Territories but also the Island of Hong Kong and Kowloon. China and Britain (should) conduct negotiations under this precondition to find the way to settle the Hong Kong issue.

"We've waited for 33 years. It will be 48 years in 15 years. Our long wait has been based on the people's full confidence. If we couldn't take back (Hong Kong) in 15 years, the people would have no reason to trust us again and any Chinese Government would be forced to relinquish power and step down from the stage of politics of its own accord. There can be no other choice."

ISD had organised numerous press conferences, but seldom one as portentous as that given by Mrs Thatcher on her return from Beijing. This time the message was loud and clear. And information channels had to be geared to convey its considerable ramifications.