CONFIDENTIAL

- 5 -

8. FED, Research Department and the Departmental legal

adviser concur.

8 December 1976

дав. f.B.B. Staat:

JA B Stewart

Hong Kong Department K246 233 3184

Copies:

PS/Lord Goronwy-Roberts

Mr Samuel FED

Mr Rushford Legal Advisers

Miss Bishop

Research Department

(and the

Chinese

judge this to be in

their interest

too)

2.

This is a valuable piece of research.

The short point is that de facto we exercise all the attributes of sovereignty both over the ceded and the leased territories of Hong Kong. There is a reasonable prospect that we shall be able to continue to do so, if we judge it in the interest of the peoples of Hong Kong and of this country, at least up to the point in time when the difficult questions relating to the New Territories come up for resolution. But were we publicly to assert sovereignty in terms over the ceded territory, let alone the leased territories, we should run a substantial risk of provoking China to challenge our statement, if not to go further and take steps (which we could not prevent) to gain physical control of the colony.

3.

I attach for ease of reference the public definition of the Chinese attitude to Hong Kong which was made by the Chinese Permanent Representative to the United Nations in his letter to the Chairman of the Committee of 24 dated 8 March 1972. This is the communication to which Mr Hooley referred in his PQ. It is very carefully drafted.

At present it is mutually advantageous to remain pragmatically silent.

4.

CONFIDENTIAL

15.

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