..partevelopment Corporation

Head Office

110 O'Connor Street, Ottawa

Mail Address:

Box 655, Ottawa, Canada K1P 5T9 Telephone: (613) 237-2570

Cable: Excredcorp Telex: 053-4136 Region ices:

Mo

Toronto, Vancouver

Société pour l'expansion des exportations

Siège social:

110 rue O'Connor, Ottawa Adresse postale:

C.P. 655, Ottawa, Canada K1P 5T9 Téléphone: (613) 237-2570

Cable: Excredcorp Télex: 053-4136 Succursales régionales:

Montréal, Toronto, Vancouver

C

H014/1

Ottawa,

December 2, 1977

Mr. Peter Faulkner

British High Commission

80 Elgin St.

Ottawa, Ontario KLP 5K7

Dear Mr. Faulkner:

Further to our telephone conversation in which I asked you about the British presence in Hong Kong. The Export Development Corporation pro- vides Canadian investors with insurance against normal political risks for their overseas investments. In order to do this we must, of course, assess as carefully as possible the level of such risks in countries of interest to our clients.

Hong Kong raises special questions because of its status as a colony of Britain, and thus I am asking you for the following information.

1.

What is the British attitude regarding the validity of

(a) her perpetual claim to Hong Kong Island (embodied in the

Treaty of Nanking)?

(b) the 1860 claim to the Kowloon Peninsula and Stonecutters

Island?

(c) the 1898 Convention granting a 99 year lease to the New

Territories?

2. What has Britain's official response been to China's rejection of

these "unequal treaties"?

3.

4.

Is there any truth to the allegation that Britain is willing to turn over administration of the colony to the Chinese on request?

How actively is the British government working to resolve the question of who will control the colony?

5. Does Britain recognise China's claim to the colony? If not, on what

If so, are steps being taken to turn over control?

grounds?

A

?

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