Mr Cortazzi

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HKK 040/1

W. (121)

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PS/PUS

Sir A Duff

Mr Murray

Mr Samuel

(FED)

Mr McLaren (HK&GD)

121

BRITISH POLICY TOWARDS HONG KONG IN THE 1980S

I have one comment on the draft outline paper (with which I broadly agree) attached to your submission of 9 November. It is that I think we have to be rather careful about what we mean by "very damaging consequences for British interests". It seems to me unlikely that there is a very strong direct British interest in retaining Hong Kong as a Colony. But there is a British responsibility for the welfare of the Colony and for seeking to ensure a future which is in accordance with the wishes and interests of its inhabitants; and since we are the administering power, at least up to 1997, we have a strong interest in avoiding the instability and disruption which would result between now and then from a collapse of confidence in the medium-term viability in Hong Kong. If this is right, we have weighty responsibilities in Hong Kong, the discharge of which creates certain interests. Withdrawal would mean an abandonment of responsibilities which would leave an unacceptably messy situation. But this is not quite the same thing as saying that "withdrawal would almost certainly have very damaging consequences for British interests" - at least by any ordinary definition or quantification of British interests.

Live

BL Crowe Planning Staff

10 November 1978

I agree.

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