Bir . Allen
Baker
SECHET
Mr. Carter ((...).
DONG KONG
SHE LONG TERM
For some months officials of the Commonwealth Office have boen at work on a study of policy in respect of Hong Kong in the long term. Far Eastern Department have been consulted, as have the Ministry of Defence, the Treasury, the Board of Trade, and the
present In its purest form, the study Department of Economic Affairs.
embodies the views of the Governor of Hong Kong, and Sir D. Hopcon has expressed his general agreement.
2.
It is the intention that the draft study should be submitted within the next fortnight or so jointly by the Hong Kong Department and the Far Eastern Department through Under-Secretaries to the Decretary of State in his new capacity with the recommendation that it be circulated in appropriate form to the Ministerial Committeo
ca rong ronge
3+
In the meantime, particularly since the Governor of Hong Kong is to call on him on 25 October, the Secretary of State may wish to ece the conclusions and recommendations of the ntuly in their
present form.
XECOMMENDATIONS OF THE STUDY
The following are the recommendations of the study.
(a) we should recognise that Hong Kong's future must eventually
lie in China and that our objective must be to attempt to negotiate its return, at a favourable opportunity, on the bost terma obtainable for its people and for our materiel
interests there.
/(b)