8507 D.073939 200M. 11/74 Cr.P.C. Gp.839/3

NOTHING TO BE WRITTEN IN THIS MARGIN

SECRET

approaches;

and as the number of British subjects

increases. The problem is also compounded by uncertainties over the succession to Mao Tse-tung

in China. This paper attempts to outline a strategy for the handling of the problem over the next decade, and is divided into five sections dealing respective- ly with the British interest in Hong Kong; the Chinese interest; and Hong Kong's external relations,

internal policies and relations with the United

Kingdom.

The main conclusions are:

(a)

(b)

(c)

that there is little or nothing that can be done to settle Hong Kong's long term future until the next generation of Chinese leaders have emerged and their policies

been established but meanwhile HMG should

avoid any action that may cause China to make difficulties for the Colony;

that meanwhile we shall need to plan a strategy of social and institutional reform in consultation with the Hong Kong Government for implementation by the mid-

1980s; and

that great care will need to be exercised both by Hong Kong and HMG to maintain the

link between them.

See

nemuite-

x

I.

3.

The British Interest

The paper is based on the presupposition that The British interest requires the continuance of the status quo for the foreseeable, but not necessarily indefinite, future. The primary consideration is that changing the present colonial link will be extremely difficult without risking a massive exodus of Hong Kong Chinese refugees with humanitarian, if not legal, claims to entry into the United Kingdom. There are currently some 22 million British subjects of Chinese origin in the Colony, of whom some 200,000 - 300,000 may have special claims on us through their connection with the colonial Government. The domestic political strains caused by the recent

2.

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/exodus

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