CONFIDENTIAL

SECRETARY OF STATE'S TOUR OF THE FAR EAST

JANUARY/FEBRUARY 1973

Brief No. HK1

BACKGROUND BRIEF

Constitution

1.

Hong Kong is a Crown Colony consisting of:-

(a) Hong Kong Island (29 square miles), ceded by

China to Britain in perpetuity under the

Treaty of Nanking, 1842;

(b)

The Kowloon Peninsula (34 square miles),

together with certain islands, similarly ceded

under the Convention of Peking, 1860;

2.

(c)

The New Territories (370 square miles), leased

by China to Britain in 1898 for 99 years.

The Chinese, however, regard these treaties as unequal

agreements imposed in the 19th century by an imperial government

on a weak and divided China and therefore not necessarily binding

on them. Nevertheless, they have recently indicated to us that,

although they regard Hong Kong as part of China which will revert

to Chinese control in the fullness of time, that time is not yet;

and that the eventual hand-over should be done in a negotiated and

orderly fashion. Meanwhile, Hong Kong in its present form is of

considerable advantage to China, especially as a source of foreign

exchange (see also Brief No HK4).

3.

In accordance with powers conferred by Letters Patent and Royal

/Instructions

1

CONFIDENTIAL

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