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(i) to abdicate our position by unilateral action,

declaring our intention to go in a specified period

of time with or without an indication of our

readiness to talk to the Chinese about it;

(ii) to accept indirect Chinese influence over the way

in which we administer Hong Kong (ie, a iacae

type situation) with a view to ultimate transference

of control;

(iii) to approach the Chinese formally with a view to

negotiating our withdrawal. This might include (but not initially) an offer to consider an interim

period of dual Anglo-Chinese control of the Colony; (iv) to approach the Chinese informally with a view to

reaching a covert understanding with them about our

eventual withdrawal at a suitable agreed date.

68. Given the character and attitude of the present regime

in China, the only course to which we could be sure of the

Chinese responding at the present time would be our

Chinesey,

Some measure of indirect control

acceptance of a Macao-type situation (the second course).

Any attempt at present to abdicate our position by unilateral action (the first course) would meet with a sharp and hostile

Chinese reaction and we would be subject to the maximum

harassment and humiliation in our attempt to extricate

ourselves; it would also quickly lead to chaos within the

Colony. We certainly could not hope today to engage the Chinese in genuine and reasonable negotiations (the third course).

69.

Unilateral action to withdraw (the first course) might

be the only course open to us in circumstances in which we

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/felt

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