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DOPC PAPER

The

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(c) they will not take surprise action; and

(a) in due time there will have to be

negotiations.

The first of these reassertions has been made

publicly in the United Nations and elsewhere.

last three were made to me by the Chinese Prime

Minister and Minister for Foreign Affairs during

my visit to Peking in November. They confirm the

assessment made in DOP(71)83 and strengthen the

conclusions of that paper.

3. The arguments on the British interest in

retaining Hong Kong are still balanced. As an

economically developed dependency, Hong Kong's

interests can clash with those of our own industry

and of our new partners in the European Community.

It will cost us something in political terms to

maintain the interests of Hong Kong within the

Community. But Hong Kong is not a liability to our current relations with China (though the Chinese

demand for an "official representative" in Hong Kong

remains unresolved). We still have a substantial

stake in Hong Kong's economy. Two million of the

four million Chinese in Hong Kong have British nationality, but while Hong Kong remains a dependency

there is no immigration problem, since they have no

right of abode here.

}

41. The gist of the matter in 1972/73, therefore,

is that China does not want to take back Hong Kong

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now or to initiate negotiations about its future, that the population continue to want us to stay,

/and

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