D

Mr Guest

CONFIDENTIAL

DR S Y CHUNG'S PROPOSAL ON LIFE PEERAGES FOR HONG KONG

1. I agree that the reply should be confined to the point

that Dr Chung's ideas have been noted with interest, and thus

concur in the draft. I suppose it is possible that Dr Chung

might mention the idea again during the Prime Minister's

visit. It might therefore be worth the Department giving some

thought to the questions which the proposal might raise. For

example:

(a) Would it be constitutionally practicable under the Life

Peerages Act?

(b)

(c)

What would be the likely political reaction in Parliament?

Could it be done for Hong Kong alone or would it have to

include all dependent territories?

(a)

2.

Would they

What would the Chinese in Peking think of it?

read into it some sinister intention or regard it as a

trial balloon to test their reaction to the possibility

of the eventual incorporation of Hong Kong into some

federal relationship with the UK?

I suspect the conclusion would be that, although the idea

has its attractions, it would raise both constitutional and

political problems in this country.

28 November 1973

Copies to:

Sir Duncan Watson

Gibraltar & General Department

Hong Kong Department

Mr Wilford

CONFIDENTIAL

Youde

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