CONFIDENTIAL
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Mr Thompsonukker ove proй quod ver
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HK&GD ** fauloveli. Ievant Lug wild pordi ho oft an dɔma quoà quoi, ak nƐ về, lju
1, 4In makinakb- doita sɔ suo al sor.0) phashlibɔ od oử suqddicə yüd noblochip Proof sdl son antift að damigof b wudut to młoşłto afd
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BRITAIN, HONG KONG AND CHINA
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1. Please refer to Mr. Faulkner's letter of 19 Décember 1977 (HK&GD réf. HKK 040/ 548/1) and to the letter enclosed with it, 'sent to Mrí(Faulkner'at (the-British High Commission, Ottawa, by the Canadian Export Development: Corporation.
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I am sorry it has taken so long to send you comments. Thia minute will convey some general observations, while a second minute will deal with the Corporation's questions. I hope this division, will be helpful.
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3. It is not easy to give definite or full answers to the Corporation's questions, for a number of reasons. In the first place, HMG has shown reluctance to commit itself to any detailed statements on the status of Hong Kong. Such official comment as has been made has been generally consistent but guarded. Since the war, members of the British Government have on various occasions affirmed HMG's intention to continue to administer Hong Kong or have upheld HMG's view of Hong Kong's legal status. This, though rarely spelt out, clearly implies its status as a British Crown Colony over which Britain exercises sovereign powers. Private government comment as in eg FCO telegrams and guidances, reveals even greater cautiousness in dealing with Hong Kong issues and even some uncertainty. A minute of 22 November 1976, from Miss Bishop (RD) to Mr Paui (FED) on the status of Hong Kong (copy enclosed), sums up official and unofficial Government attitudes. have not changed, so far as I can tell, in the intervening months.
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Chinese attitudes, secondly, confuse as much as they illuminate the questions of Hong Kong's future. Since 1949, China has stated its view that Hong Kong and Macao are China's territory and constitute questions left over from history which will be settled in an appropriate way when conditions are ripe. (China's letter of 8 March 1972, to the United Nations Special Committee of Twenty-four on decoloni- sation restates this view copy attached see Flag B). While China's claim to Hong Kong has been clearly set out, the means proposed of settling that claim remain obscure. Chinese private comment, as conveyed through conversations between Chinese leaders and visiting guests whether official or unofficial, or through unofficial spokesmen in such places as Hong Kong itself, has been generally reassuring on Chinese intentions not to force the pace of settlement, but still unclear on timing. A Research Department minute of 13 October 1975, from Dr Hoare to Mr Martin (FED) gives some examples of such private Chinese comment.'
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Britain thus appears to be forced back generally upon assumptions about Chinese intentions 'over Hong Kong. This element of uncertainty, combined with a 'desire to maintain good relations with China and with possibly some reservations over the validity of our claims to all parts of Hong Kong, will in part account for HMG's cautious approach to the question of Hong Kong. Mr Stewart's submission of 8 December 1976, to Mr Luard on the status of Hong Kong sums up Hong Kong Department's views on the subject.
6. The course of Sino-British relations would seem to be the most important factor governing the future of Hong Kong. At the same time, Hong Kong is probably the most important issue between the two countries. Relations between China and the UK since 1949 have varied between bad and good, and these fluctuations have been closely reflected in China's dealings with Hong Kong, However, it would seem
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